TGA - Thorn Group Ltd

[macduffy]

Here's an Aussie industrial company that's turning out good results in difficult economic conditions.

Essentially an appliance rental outfit under the brand names Radio Rentals and Rentlo although they have branched out into debt collection and recovery and small consumer lending in recent years. These latter activities, operated through subsidiaries National Credit Management and CashFirst, respectively, still comprise only a small part of the total business. The company trades in NZ under the DTR brand which my contemporaries will remember as "Dominion TV Rentals".

NPAT in the latest half year to 30 Sept increased by 30% and an increased dividend was declared. At $1.70 the shares trade at an historic P/E of 9 and a divvy yield of 5.3%. Market Cap of $247m. Management are forecasting "substantial" growth in the current year which appears to be on track at this stage.

I've recently taken a small position so DYOR.

Footnote: When searching for references to "Thorn" on Sharetrader, the only link was to a brief thread in 2004 lamenting Brad Thorn's move back to the Brisbane Broncos. The last post was something along the lines of "Don't they make TV's?"
"They" did, of course, and interestingly, TGA announced recently that they intend to resurrect the brand for their TV rental business.

[steve fleming]

MNY (Money3) offer a cheaper (but riskier) exposure to consumer lending / appliance rentals (but more skewed to lending as they are still ramping up their rental operations).

Currently MNY is on a 11% div yeild; 5.5 x trailing NPAT and 3 x trailing EBITDA

CCV also offers a cheap exposure to the low end consumer finance market.

[ENP]

A steal at a P/E of 8. I bought some on Friday.

[macduffy]

A steal at a P/E of 8. I bought some on Friday.

Yes, the shareprice has been under a bit of pressure lately. This may be one factor:

http://www.macquarie.com.au/dafiles/...TGA150312e.pdf

[macduffy]

Update on TGA. Trading around 12 month highs at $1.975 on a forward PE of about 10 if consensus forward earnings of 20.5c are near the mark. Interim result due to be announced 20 November.

I hold and have added a few more recently.

[Joshuatree]

Interim out NPAT down 2% to 414 mill
Rev up 4% to $100.5 mill
EPS 9.57cps down 5%
Interim div 4.5cps 13% increase

Shareprice down 10% atm $1.78 !!

[macduffy]

TGA SP has made a good recovery from that temporary small setback.

Now at a 12 month high of $2.17.

[Joshuatree]

Broken Down from nov uptrend (from re$1.78), can't see a reason. MD promised not to sell any more shares, hee. Got as low as $1.90 $1.94 atp On Historic PE re 8 ,div re 5%

[macduffy]

A flat profit result from Thorn but the market liked it - SP up 13c to $2.26.

Dividend increased, so presumably its being sought for its solid yield.

I hold.

[macduffy]

......and up another 8c to $2.34.