TRA - Turners Automotive Group

[winner (n)]

Director appointed ..permanent this time  ...... a cool choice I reckon as the way business is done changes

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TRA/409312/391852.pdf

[Basil]

Agreed, looks like a good appointment.
Expecting a fully imputed quarterly dividend of 6 cps to be announced next week with a short timeframe between announcement and payment dates.

[Mos]

I like the finance and insurance origination competitive advantage that Turners has. They won't sell finance and insurance to all customers but attachment rates are not bad and increasing. Can work well targeting least price sensitive customers who value on the spot convenience. Quality of book also increasing which is good in these times.

[Basil]

Been quietly adding blocks of additional shares since post #163.
Some big declines in the share prices of WHS and SML in recent weeks have been extended in a fairly big way this week, both current NZX50 constituents. Turners share price by comparison, remaining resilient in this recession is gradually working its way into contention for index inclusion in due course, currently position 53.   In the meantime, the metrics are compelling as noted earlier and the business is enjoying good tailwinds from 10,000+ vehicles written off in the flood and cyclone.  Something a little bit extra attractive about a company that pays quarterly dividends...doesn't mean a lot in the overall scheme of things I know, but in my opinion, it does signal a shareholder centric focus.  I guess I am a true dividend hound at heart lol.
Interestingly, I noted on CNBC this morning they did a survey on the best strategy for the rest of 2023 and holding high dividend yield shares came out on top as the most compelling strategy. 

[winner (n)]

Agreed, looks like a good appointment.
Expecting a fully imputed quarterly dividend of 6 cps to be announced next week with a short timeframe between announcement and payment dates.

And 6 cents it is ...and fully imputed ....that's good

Same as last year so no payrise .....don't they know there's a cost of living crisis and punters need increases ...... even the government gets that bit.

[Basil]

 I think Turners are performing very well indeed in the current tough economic environment and it's to their credit that they are able to maintain the dividend as we scrape along the bottom of the economic cycle.  I believe they have sound prospects for earnings and dividend growth in the years ahead. Prospects for NZX50 inclusion in the medium term are looking good too.

[winner (n)]

People are loving this with Tina in it

I couldn't watch


https://twitter.com/disndatnz/status/1643384725959217152?s=61&t=iHjDYVMfLj1Ccl5JFHMPjA

[Basil]

Whome kindly pointed out to me the interesting looking TA on Turners yesterday.
Clearly broken up through the 100 day MA and looking to break up through the 200 day MA.
Record profit about to be announced in a recession.
Last day of trading today to get the Q3 fully imputed dividend of 6 cps.
#52 on the NZX free float capitalization when PPH exits with both WHS and SML making great strides towards possibly exiting the NZX50 in due course, perhaps at the September 2023 index review?
Posted the attractive metrics PE and gross yield quite recently, see post #163.
Pretty good place to ride out the recession, enjoy a very high quarterly gross yield and enjoy future growth in due course?  you be the Judge.

[Waltzing]

Anyone checked second car sales prices in yards lately?  amazing the prices being asked for almost anything that fires up..

[winner (n)]

Interesting stuff in Turners monthly "The Vehicle Market"

Number of dealers still declining and used car prices still at multi year highs

Things looking good

[Basil]

Interesting stuff in here about shipping delay's and this at a time when 10,000+ people want to replace their cars due to the flooding and cyclone weather bombs.  https://www.rnz.co.nz/news/business/489231/delivery-time-for-some-imported-cars-increases-from-weeks-to-months-industry

Turners appear well placed considering they buy most of their cars locally.
Good for Tuners even if the lovely Tina advertisements does grind your gears a bit.  Don't you love their radio add where Tina forcefully says "Cars! Cars! Cars! Tuners! Turners! Turners!" Really effective advertising eh Winner...advertising that's so bold, jarring and brazen, you can't help but remember it 😁

[BlackPeter]

Interesting stuff in here about shipping delay's and this at a time when 10,000+ people want to replace their cars due to the flooding and cyclone weather bombs.  https://www.rnz.co.nz/news/business/489231/delivery-time-for-some-imported-cars-increases-from-weeks-to-months-industry

Turners appear well placed considering they buy most of their cars locally.
Good for Tuners even if the lovely Tina advertisements does grind your gears a bit.  Don't you love their radio add where Tina forcefully says "Cars! Cars! Cars! Tuners! Turners! Turners!" Really effective advertising eh Winner...advertising that's so bold, jarring and brazen, you can't help but remember it 😁

You make that sound as if the locally sourced cars are not part of the same market.

If people find it difficult to buy a newer pre-loved (due to lack of supply) they will have little motivation to sell their elder pre-loved (due to the difficulties of getting a replacement).

Whole market will slow down, and with sales prices going up, so will the prices for sourcing stock.

Only advantage of this situation for a sales company is if the have lots of stock ... and from memory - for TRA we talk something like 6 weeks worth. Not a lot.

But hey - maybe they can close down their sales yards and ask customers (like Toyota does) to register their interest in a new Toyota on the internet - don't bother anymore to come to our sales yards.

[lorraina]

Went to Turners Christchurch yesterday afternoon looking for a first car for the grand daughter.The 2006 Toyota Vitz sounded just right.Pity they could not find it.!!!

[Basil]

BP they buy and sell on the same market and a rising market, (which is what we have now with stock being harder to procure and 10,000+ vehicles sought as replacement for the flooded cars) suits them better as they're getting better margins on their current stock.

The numbers of competing dealerships continue to shrink as some of their competitors who source primarily overseas continue to go out of business and Turners continues to grow its market share.  Their award winning marketing is helping a lot and their steady footprint expansion throughout the regions again helps to grow their national market share.

They are shortly to report an all time record annual result despite strong headwinds in the first quarter from Omricon and strong funding cost headwinds all year and a soft economy in a cost of living crisis.  I'm impressed with that.

[Waltzing]

Sold!!!! ..... 

https://www.turners.co.nz/Cars/Used-Cars-for-Sale/toyota/vitz/?sortorder=7&pagesize=20&pageno=1&issearchsimilar=true&make=Toyota&models=Vitz