TRA - Turners Automotive Group

[winner (n)]

https://www.interest.co.nz/economy/129634/david-hargreaves-assesses-prospects-forthcoming-quarterly-gdp-figures-which-are
You sure about that mate?  Turners performance against the bleakness of the economy is quite extraordinary.  Certainly, its notable the quite stark difference in Turners very positive market update yesterday as compared to 2CC's update today.

GDP just a number .....and affected by many factors like this from one report -

As Stats NZ had noted, changes in the timing of tobacco imports have disrupted the pattern of quarterly GDP to some degree, boosting growth in the March quarter and acting as a drag on growth this time.

[Waltzing]

TRA has become a barometer for the economy...

https://www.interest.co.nz/economy/129812/new-zealand%E2%80%99s-capita-recession-has-surpassed-global-financial-crisis-after

[winner (n)]

TRA has become a barometer for the economy...

https://www.interest.co.nz/economy/129812/new-zealand%E2%80%99s-capita-recession-has-surpassed-global-financial-crisis-after

So economy in pretty good shape waltz

[Basil]

TRA has been an exceptional performer despite the recession of the last 2 years and the years of Covid challenges prior to that.
I think its the exception to the rule rather than a barometer of the economy.  HLG has also done very well in the circumstances.
https://www.1news.co.nz/2024/09/19/gdp-nzs-economy-shrinks-by-02/

[lorraina]

Both TRA and HLG have been very strong swimmers against the current.

[Left Field]

Both TRA and HLG have been very strong swimmers against the current.

To be fair, there have been quite a few on NZX doing well against the current.....GTK, TWR, FPH, IFT etc

[Waltzing]

weeel according to the papers the eco system is in terrible shape...

if TRA is up maybe its because no one can afford new wheels...

if its a slow coach eco system then TRA could be 5 dollars by this time next year and blue skies after dat...

[Basil]

$5 party at next year's annual meeting, you read it here first.  In the meantime, there's the attractive ~ 9% gross yield to enjoy

[Waltzing]

by 2030? why sell any of these....

https://www.taxpayers.org.nz/the_reserve_bank_engineered_recession

[Waltzing]

while the country is in a Paint it Red mood

this stock is in the green this week... 5 dollars by march 31 2025?

https://www.interest.co.nz/economy/129822/economists-call-faster-rate-cuts-recent-slowdown-economic-activity-outpaces-2008

[Basil]

Talked with Todd a while back. 1% reduction in OCR worth $1.2m extra NIM on their loan book, probably more with growth in their ledger since then.  Also more acconodative interest rates means more sales which is fuel into the flywheel of their other divisions, finance and insurance. Wouldn't surprise me if they got their FY28 target of $65m in FY27.

[winner (n)]

Might need to watch the replay of ASM to see Hamish

From BusinessDesk


Show us your margins When Turners chair Grant Baker opened the car retailer's annual meeting this week offering a Tina from Turners-shaped air freshener for best question, he probably got a bit more than anticipated.

In one of the more dramatic AGMs of the year, shareholder Hamish managed to question the board for about 10 of the 30 minutes of question time. 

Hamish got into the nitty gritty – probing the board on its profit margins and questioning whether they were sustainable because, according to Hamish, Turners was getting bad Google reviews. Hamish cited a Deloitte report that suggested the average industry margin for used car sales was between 3% and 4%, when his assumption from Turners' financials was the NZX firm's margins were 10%. This was followed by A LOT of back and forth between Hamish and group chief financial officer Aaron Saunders on how margins are calculated, what other divisions were driving growth and how goodwill works.

Hamish had "done some research" and concluded that poor Google reviews would eventually hit Turners' bottom line.

Going into the 10th minute of questions, CEO Todd Hunter decided to intervene. "Your statement about above industry margins is just wrong," he said quite flatly, ignoring Hamish's bids to interrupt. "We are a high-volume, low-margin business... are not making double the amount of other used vehicle providers in NZ."

Hamish said "negative experiences" were creating a liability that was "concerning and problematic." "I'm not concerned a bit," said Hunter, who then stood to question the shareholder. "What's your business Hamish?" "I'm a used car dealer, but my questions are still valid," came the response. "Are you a competitor?" asked Saunders. "In some spaces, yes," Hamish replied, and then promptly shut up. Incidentally, Baker forgot to give out the air freshener.

[winner (n)]

Better keep an eye on these negative reviews in case Hamish is right and they will impact the bottom line

[Waltzing]

gosh ... hamish must be really upset that hes not running Turners...

code word for Pixxed...

TRA is a integrated one stop shop and probably the go to for fleets and government ...

volume matters ... scale ect..

second hand scrap metal has always been big business...

and used to look at all those holden and falcons and wonder where are they all going to go.. the crusher?

[Jay]

My opinion is along the lines of what Todd said re the negative reviews.
Most people expect to get x for their, cause that's what they may get if sold privately, forgetting the any car dealer needs to make a profit and only offers y!
Plus, in general you are more likely to write a negative review that a postive one.
I always remember that when looking at reviews from the likes of Google, on business websites etc, at the same time looking out for fake glowing reviews!


I think Hamish may have been a bit jealous!