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

[MauroNZ]

Marvelous that Todd took the time to share some insights in late October 2020 with us. The only CEO of a listed company (that I am aware of) that makes the effort to do so. My nose for a feed was giving a solid reading as early as October that FY21 was going to be a great year and I expect the tailwinds to continue into FY22 and ultra low interest rates could persist for many years.

As the boarders opens to travel remains uncertain (mainly if anyone going to overseas holidays having to count two weeks and the cost of quarantine) and unlikely to open this year given all the current news, I wonder if in the view of the CEO this could be another reason on increase in car sales.

[Louloubell]

Craigs added 10.5% to their target price of TRA to $3.29

Diversified and well-managed business with all divisions contributing well and regular divvies.

What is there not to like?

[Beagle]

18 cent divvy for the year and 2 x 4 cent divvies paid points to the next two quarterly dividends being 5 cents each. Likely to continue at 5 cps each quarter in my view as dividends increase to 20 cps in FY22. I'm a little surprised the market hasn't embraced the upgrade more enthusiastically.

[clearasmud]

That's a good point Beagle.
I'm glad you're back.

[Yoda]

If I was a long-term investor which I was not in this company, I would have been a bit disappointed with a 10% gain in the last 10 years. Everyone can see it's been a nice steady gain in this last year and may continue. Thanks to all for you're continued entertainment knowledge and wisdom. Better late than never and I bought some today.

[jonu]

18 cent divvy for the year and 2 x 4 cent divvies paid points to the next two quarterly dividends being 5 cents each. Likely to continue at 5 cps each quarter in my view as dividends increase to 20 cps in FY22. I'm a little surprised the market hasn't embraced the upgrade more enthusiastically.

Someone seems happy to unload at 3.35. Keeps being refilled everytime it's cleaned out. Bit surprising.

[sb9]

Someone seems happy to unload at 3.35. Keeps being refilled everytime it's cleaned out. Bit surprising.

Could well be Salt Funds, they're the only one that put out a notice to that affect last year.

[jonu]

Could well be Salt Funds, they're the only one that put out a notice to that affect last year.

They've either stopped or the broker is at lunch

[Beagle]

Someone seems happy to unload at 3.35. Keeps being refilled everytime it's cleaned out. Bit surprising.

Its is a bit. Last year they paid the full 28% tax rate so at the mid point of their FY21 forecast of $34m, (which is a solid uplift from the $29.1m last year) before tax this suggests $24.5m after tax which on 85.54m shares = eps of 28.64 cps. At $3.35 that's a forward PE of 11.7 which with interest rates where they are is basically a "no growth" PE. Whether they can grow from $34m then becomes the key question. I think tailwinds of ultra low interest rates persist for many years and the Turners brand is doing okay and vehicle margins could remain elevated for quite some time.

I am happy to hold and enjoy the high fully imputed quarterly dividends. I've bought so many vehicles over the years and paid dealers so much money its nice to be investing on the other side of the ledger and making money from others vehicle purchases for a change !

[RTM]

Someone seems happy to unload at 3.35. Keeps being refilled everytime it's cleaned out. Bit surprising.

They did drop to 113 and sat around 160 for some time last year. Not sure of the volumes, but if I had been brave enough to accumulate a sizable quantity then, I think I would be quite happy to be re-balancing at 335.