TRA - Turners Automotive Group

[winner (n)]

 RBNZ focus is on keeping enough people unemployed and desperate to prevent higher living costs passing through to wages. No wage growth, no inflation worries.

So any more OCR cuts is a stupid move

[Waltzing]

the next move lower is 50/50 then...

certainly the heartland appears to have saved the day....again....

and labour hates them...along with the greens... still it take a long time for the money to flow through the system...

when is that next meeting and TRA out soon with more info...DAT HALF year ...

[Basil]

25 bps cut next month appears likely but another 50 bps cut a possibility.  Good tailwinds for extra profit in their finance book.

[SCOTTY]

Divi tomorrow 😋

[Basil]

Yeah, more shares under the dividend reinvestment plan and bought a few more on market as well.

[Waltzing]

is it on the move again? Gosh with all eyes on HLG TRA just moved up a few again!!! 7.54b

[Basil]

is it on the move again? Gosh with all eyes on HLG TRA just moved up a few again!!! 7.54b

Both hit new all time high's yesterday. In addition to both being compelling GARP (growth at a reasonable price) stocks the TA looks great.

[Dolcile]

Anyone want to throw a few buck at the $8 seller 

[Umpah]

Go on do it

[Basil]

Anyone want to throw a few buck at the $8 seller 

What's a fair forward PE for a company with a 5 year EPS CAGR of 12.4% ?

In my books it's 20. 20 x forecasr EPS of 50 cents is $10. That's where I see the fair intrinsic value of Turners.

[winner (n)]

Basil, any idea of the real value (market) of the $228m of land and property they have on the books at cost les depreciation?

[Basil]

Great question for the annual meeting Winner !

[winner (n)]

Great question for the annual meeting Winner !

Or at least asking in the hugs session after the meeting.

[Dolcile]

What's a fair forward PE for a company with a 5 year EPS CAGR of 12.4% ?

In my books it's 20. 20 x forecasr EPS of 50 cents is $10. That's where I see the fair intrinsic value of Turners.

Remind me Basil, what is your GARP formula... is it EPS*(8+growth)?

[Basil]

Ben Graham used historical EPS x a no growth (8.5 + 2g) where g is the expected EPS growth rate for the next 7-10 years.

I use forward EPS x no growth PE of (8.5 + 1g) which gives a far more conservative valuation.  The trick of course is estimating forward years g which is never easy but is made easier when companies like Turners have a very well defined growth plan in the years ahead that's already been working extremely well.

Turners growth has been remarkably consistent over the last 5 years, whereas HLG has been more patchy and slightly slower but I think Glassons Au has a longer runway for growth due to the size of the total addressable market in Australia than Turners does here but who knows with Turners.  Management are very, very smart operators so who knows what their expansion plans are beyond the obvious over the next ~ 7 years.  I have to admit I initially didn't think much of the Turners Mk2 advertising campaign but that song "sell us your car" is growing on me and its quite catchy.  It'll be super interesting to see how much they exceed 10% earnings growth when they report later this month.  Another fresh all time high today suggests to me the market is sniffing out a decent sized earnings beat.