TRA - Turners Automotive Group

[Mos]

LOL, speaking of the rich and famous and Grant Bakers well known love of Ferrari's I see on CNBC this morning the market cap of RACE (Ferrari's ticker code), exceeds GM or Ford despite them being a niche manufacturer only making 15,000 cars a year!  Apparently, they are making massive margins selling limited edition Ferrari's for $4-5m (presume that's $US) to enthusiasts and all production is sold out through to the end of 2025 including for their "regular" models !  Amazingly, this despite well-known high end brands Porsche and Aston Martin recently reporting softening demand.

Meanwhile back in the real world for us mere mortals lol.
Thanks for your comments Mos.  Brand campaign's an interesting thing to watch build successfully over the years.  Love the way Rod Duke has used Tammy over the years to build brand value with Briscoes.  Nothing like a relentlessly positive and highly relatable personality to build brand value over time eh.  Bit of humour like Turners construct with their Tina campaign goes a long way too.  Right at the start I could see how successful the Tina campaign was going to be so strongly encouraged Todd to lock our star into a long term contract.
P.S. I think they're going to do eps of 39-40 cps this year so on a PE of 11 that's $4.29 - $4.40.  Deserves a higher multiple than that in my opinion.

Yes I am forecasting similar for full year at 40-41 cps with possible upside. Great business momentum underway which has a high probability of enduring. Good business and well managed.

[winner (n)]

Is Todd a better CEO than our Jeff ...or is that determinate on prevailing share price

[lorraina]

Ferrari margins on new cars is very high.
Yet their margins on parts must be out of this world.Incredibly expensive.
Look at Ratarossa videos on Youtube.

[Waltzing]

No wonder the price went up today... no chance of sub 4 now...]

2 year chart still shows a possible back fill and them move up.

im sure Carter Braxton Worth would show some the channel it is now in clearly.

[winner (n)]

I'd be terribly disappointed if they don't come out say F24 npbt is forecast to be greater than $50m

Be a downer, ie performance/results not meeting hype

[Basil]

Todd not hyping anything in my opinion.  In summary, what he said was profit is expected to be $25m+, they are expecting another record result in FY24 and that the business was performing really well despite all the headwinds.  I think directionally we can all see where this is headed "over time", but we don't want to get ahead of ourselves in terms of expectations.

In my experience it's a very rare thing to see really well managed growth companies on a PE of just over 10.
This would need to really pop quite a lot on index inclusion to tempt me to let any go as I still think this is compelling value where it is.  NZX up 3.24% this week, Russel 2000 index of small companies in the US up 7.5% this week...TRA up less than half a percent this week, just an observation.

[BlackPeter]

Is Todd a better CEO than our Jeff ...or is that determinate on prevailing share price

Absolutely - always is ; Remember - there have been even times when Geoffrey and John used to be great CEO's.

[Basil]

Is Todd a better CEO than our Jeff ...or is that determinate on prevailing share price

I will say this.  The amount of ESG nonsense coming out of HGH is nauseating to say the least, whereas Turners keep their ESG enunciations to a very sensible level.  How much of HGH's very forthright wokeness is driven by the board or driven by Jeff is debatable.

[BlackPeter]

I will say this.  The amount of ESG nonsense coming out of HGH is nauseating to say the least, whereas Turners keep their ESG enunciations to a very sensible level.  How much of HGH's very forthright wokeness is driven by the board or driven by Jeff is debatable.

I agree that many companies start to discover their ESG consciousness only when they have nothing else positive to talk about, and this clearly would be a good indicator for investors to seek the exit.

On the other hand do I not believe that all ESG is mumbo-jumbo. Clearly - companies need to move towards more sustainable operations, and companies using unbiassed the talents of everybody do have an advantage compared to companies who are so affinity biassed that they (conciously or unconsciously) stick with white cis middle aged males to run the show.

Not quite sure where to put HGH in this story, but at least they are so far long term pretty successful, aren't they?

I think blind opposition to ESG is as dumb as blind support of ESG for ESG sake. Better to find valid criteria to value companies.

[Basil]

Agree with your post BP but unfortunately your first paragraph sums up an all too common theme.  I do get it that some people want the products they buy to come from sustainably sourced materials in a fair and ethical way and also get the whole unconscious bias subject but there are many companies using a thick veil of all things ESG to try and mask their woeful financial performance.  To be honest I tend to ignore it all now on the basis that the noise around ESG has become so shrill, it's almost always at attempt at obfuscating the real issues.

In regard to HGH, see if you can read you way through their HUGE voluminous 163 page, 13 mm thick annual report, (largest annual report I can ever recall seeing), including all the Te Reo sections and then report back what you think about their ESG    I thought about reading it all and then nearly lost the will to live lol   Thankfully they have their much more concise investor presentations in plain English and yes they are doing okay, if and only if you accept at face value all their new profit normalization measures.  I am not sure I like all their new ways of normalizing their profit.
You don't get any of that nonsense at TRA.

[Basil]

Ferrari margins on new cars is very high.
Yet their margins on parts must be out of this world.Incredibly expensive.
Look at Ratarossa videos on Youtube.

Off topic, just shooting the breeze while we wait for half year results on 22 November. 
Yeap, think CNBC said their margin was 18% which is very high in the motor industry.
Curious thing these ultra high net worth people buying limited edition Ferrari's for US $4-5m.
It would seem its all about their collectability and scarcity and many will be investments that are never driven.
It must be that way because you can buy one of their very fastest models for the "bargain" price of only $850K $Kiwi...chump change for the billionaires that buy the limited-edition models.
Its a hybrid mate so think how much fuel you will save.  Do you think you could cope with "only" having 1,000 horsepower?      I think I'll pass...probably kill myself in it on the first day lol https://www.trademe.co.nz/a/motors/cars/ferrari/sf90-stradale/listing/4361085963

[Waltzing]

More buying today moving that price up ...

[Jay]

Where do they ever get these L/100km numbers from - for any hybrid that is

I think I'll have to trade in my Mazda 3 that does about 8.3L/100Km for this Ferrari at 5.8L/100Km
Will save the price difference in no time!

Good to see TRA moving in the right direction again!

[Basil]

You should ask for an extended test drive around the South Island for 2 weeks to validate those fuel economy claims first...I'd love to see the face of the dealer principal if you asked for that 😉

Speaking of 2 weeks.  That's how long until the half year result is announced.

[winner (n)]

You should ask for an extended test drive around the South Island for 2 weeks to validate those fuel economy claims first...I'd love to see the face of the dealer principal if you asked for that 😉

Speaking of 2 weeks.  That's how long until the half year result is announced.

Could have been longer if Announcement hadn't been brought forward

Full year pbt $50m here we come