CMO - Colonial Motor Company

[Beagle]

And the only offer showing at the moment is at $10.00.

And its not me on the offer. Anywhere in the low mid $8 range if you can get them for that cum a 35 cent fully imputed final divvy is very good buying in my opinion.

[Beagle]

Got my Colonial Motors annual report today. Nicely bound up with a lovely gold colored cover to commemorate their 100th year in business. Simply done but very nice and classy. Makes for a very interesting comparison these two companies. CMO and Turners.
Nice steadily growing profits for the last 5 years and that growth from not a single new share issued, very nice. Average total shareholder return for the last decade 15.5% per annum. My goodness I observed, that's almost as good as RYM except with Colonial about half the TSR has been in dividends. SP more than doubled in the last 4 years while Turners has gone backwards...makes you think doesn't it. Hmmm
Gross FY18 yield Turners 7.4% Colonial Motors based on theoretical ex divvy price of $8.00 8.7%. Forward PE's are both pretty cheap and under 10 by my reckoning.

My Goodness though this putting up directors fees must be contagious though. Chair is proposed to go up by a "whopping" $5K from $84.5K to $89.5K and this for a company turning over $900m plus and developing property left right and center as well as providing full service dealership facilities to a wide variety of vehicles and trucks. And what's this about directors fees increases being increased based on TWO independent sources ?

Does beggar belief really especially seeing as Turners so called independent directors remuneration review didn't cite any specific company comparisons. A cynic might suggest there is the possibility that Turners consulted with a number of sources before they picked the answer they liked the best.
Disc: Turners - Hold
Colonial - Accumulate more on any weakness.

[Timesurfer]

Imagine the divvy CMO could fork out if they only used one staple on the annual report instead of the nice binding.

[percy]

Imagine the divvy CMO could fork out if they only used one staple on the annual report instead of the nice binding.

Nice one..!..lol.

[Beagle]

Imagine the divvy CMO could fork out if they only used one staple on the annual report instead of the nice binding.

LOL actually on closer inspection its not bound at all, just a nice cover and stapled twice to form a booklet report that looks like its bound, so I doubt they could increase the dividend much with saving one staple Does have nice thick smooth coated paper...you know, like it will hang together well and like the directors actually want the shareholders to read it. Room for improvement though, could do with more photo's like HLG's report although having said that all the bar graphs looks very attractive

[blackcap]

LOL actually on closer inspection its not bound at all, just a nice cover and stapled twice to form a booklet report that looks like its bound, so I doubt they could increase the dividend much with saving one staple Does have nice thick smooth coated paper...you know, like it will hang together well and like the directors actually want the shareholders to read it. Room for improvement though, could do with more photo's like HLG's report although having said that all the bar graphs looks very attractive

Hey Beagle, are you coming down for the AGM? I have the NZO AGM at 10am that Friday and then the CMO one at noon which I will be attending. If you do come down, give me a heads up and I will look for you. (good lunch normally at the CMO event and it being their 100 year celebrations I am sure it will be even better than normal). If that is worth a day off work that is for you to decide

[Beagle]

Hey Beagle, are you coming down for the AGM? I have the NZO AGM at 10am that Friday and then the CMO one at noon which I will be attending. If you do come down, give me a heads up and I will look for you. (good lunch normally at the CMO event and it being their 100 year celebrations I am sure it will be even better than normal). If that is worth a day off work that is for you to decide

I'll mull that one over mate.

[peat]

LOL actually on closer inspection its not bound at all, just a nice cover and stapled twice to form a booklet report that looks like its bound, so I doubt they could increase the dividend much with saving one staple Does have nice thick smooth coated paper...you know, like it will hang together well and like the directors actually want the shareholders to read it. Room for improvement though, could do with more photo's like HLG's report although having said that all the bar graphs looks very attractive

Indeed it does a good job of pretending to be a well done report but in fact is pretty budget. As you say no photos!! I love reading some of the glossy AR's by manufacturing and mining companies and so this was a bit disappointing esp for a centenary edition.
But it does show how well they work to maintain costs lol.

I was about to comment on this thread that someone is buying CMO and pushing the price up. Now it has been revealed
Definitely solid figures. No takeover premium but longevity is the converse side of that.

[blackcap]

I was about to comment on this thread that someone is buying CMO and pushing the price up. Now it has been revealed
Definitely solid figures. No takeover premium but longevity is the converse side of that.

How do you infer from the Annual report that it has been revealed? Or am I missing something here?


In addition can someone explain to me why 171 employees earn over $100k at this firm?
http://nzx-prod-s7fsd7f98s.s3-websit...373/287412.pdf

Page 45 gives a good breakdown. What is more surprising is that there are 12 people earning over $290,000 per annum and the top dog gets $1.7m.
Not complaining as they have been one of my best investments but someone more knowledgeable able to give an explanation?

[minimoke]

In addition can someone explain to me why 171 employees earn over $100k at this firm?

10 decent sales people per dealership?