TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Rawz]

yes be interesting. Now we are back to fundamentals on the company and not momentum based trading.

anyway fundamentals we are talking about car segment as other segments not much growth in them worthy of mention
to me they had tailwind of covid which reduced supply of new cars and caused demand for used cars which pushed up prices allowing tra to boost margins last 3 yrs. this has gone now
the last yr they had clean car discount scheme which pushes prices further up boosting there margins again. this ends this week i believe as govt ends the scheme.
NZ in recession demand is slowing although used car sales and prices holding up for now. i dont see this continuing far into next yr. why people will hold onto car longer now due to cost of living constraints and turners have said market has shifted , demand now at lower price points which reinforces this narrative of mine.

A lot of cars TRA get they have to sell..
Margins may reduce thou i agree there.

However the good thing with TRA is they have the finance division which should show NIM growth over the coming years.

Overall modest eps and dps growth should continue imo

[Baa_Baa]

the last yr they had clean car discount scheme which pushes prices further up boosting there margins again. this ends this week i believe as govt ends the scheme.

In what way, how, was the CCD "boosting their margins"?

[Ggcc]

yes be interesting. Now we are back to fundamentals on the company and not momentum based trading.

anyway fundamentals we are talking about car segment as other segments not much growth in them worthy of mention
to me they had tailwind of covid which reduced supply of new cars and caused demand for used cars which pushed up prices allowing tra to boost margins last 3 yrs. this has gone now
the last yr they had clean car discount scheme which pushes prices further up boosting there margins again. this ends this week i believe as govt ends the scheme.
NZ in recession demand is slowing although used car sales and prices holding up for now. i dont see this continuing far into next yr. why people will hold onto car longer now due to cost of living constraints and turners have said market has shifted , demand now at lower price points which reinforces this narrative of mine.

I would be concerned if all Turners seemed to be was a sales yard, but their whole business model is somewhat protected from a recession. They move too many cars to not pick up on the trend fast. If cars at a higher price point are not moving they will offer car owners less for their cars until things start selling. I agree price may move south in short term

[bull....]

In what way, how, was the CCD "boosting their margins"?

CCD inhabited used car imports boosting prices of locally sourced stock. ie fatter margins almost straight away on all inventory on hand when it got introduced. With the cancellation used car imports should increase again boosting supply of cars on the market. ie 2CC and others CCd scheme was bad for them and good for turners.

[Rawz]

CCD inhabited used car imports boosting prices of locally sourced stock. ie fatter margins almost straight away on all inventory on hand when it got introduced. With the cancellation used car imports should increase again boosting supply of cars on the market. ie 2CC and others CCd scheme was bad for them and good for turners.

you are right if you mean the opposite of what you typed

[ronaldson]

incrementally subsiding now from Fridays close at $4.68. I predict $4.30 by the end of the week, and possibly sooner.

[alokdhir]

Everyone has become smarter after the HLG experience ....No wonder it cud not break above $ 4.80 ...lol

But happy to note that WE are a bunch of fast learners ....we know how to read between the lines of Gurus ...as sometimes they hide their real messages

[kiwikeith]

I just bought a car from Turners last weekend. It was a japanese hybrid taking advantage of the clean car discount while it lasts. I had told the salesman that I was not that happy that the dashboard was in japanese. He just sort of shrugged his shoulders. I bought the car anyway as it seemed what I wanted and was $2,000 cheaper than the higher mileage but same model and year car at the toyota dealer. When I got the car home I looked on youtube how to convert the dashboard display from japanese to English. I said to the wife I don't think this will work, otherwise Turners would have done it on all their imports. Less than one minute later my dashboard was in English! I am amazed Turners does not do it itself and nor did they bother with putting the car clock on the right time. Overall though I was happy with my purchase.

[Perky]

That will be bloody TINA’s fault.
There Is No Adjustments

[Muse]

As the closing match and subsequent processing of off-market transfer forms is a unique time to move meaningful blocks of shares for large holders, coupled with we may still be in an open period for insiders, dont be surprised if we get some SSH or director/officer notices.

http://nzx-prod-s7fsd7f98s.s3-websit...731/409831.pdf

Not surprised to see this - Todd mentioned one of Grant's goals was the NZX50 entry - so no problem with him enjoying some of the spoils of that achievement. Still owns a big whack.