TRA - Turners Automotive Group

[Waltzing]

shes a trade ... cant wait to see laps from TINA...

only as we dont watch NZ TV im sure she will pop up on the internet somewhere..

[LoungeLizard]

SP heading back to where it was pre-inclusion. Doesn't make much sense to me, but who knows what deals were done behind the scenes by Fund managers. Or maybe they are yet to do their re-balancing?

[seaweed]

What a laugh. I had an order in I had forgotten about it wasn't until I was checking my emails that I noticed I had bought more at 4.69 lol.

[seaweed]

SP heading back to where it was pre-inclusion. Doesn't make much sense to me, but who knows what deals were done behind the scenes by Fund managers. Or maybe they are yet to do their re-balancing?

They probably all headed back to HLG for the 4 month double dip with the fantastic yld. But you have to buy back into HLG before 5pm Wednesday 6/12/23 which is tomorrow night to get the double. This is better than the horses with a guaranteed pay out. I got a dollar each way on this one and also a dollar each way on TRA. They are both winners in different races    

[Basil]

Index inclusion happens over 10 trading days usually with the peak demand in the last few days and more specifically the last 15 minute match price process on Friday 15 December..  We know approx. 2.2 million shares must be brought so I think buyers are biding their time.

Hope HLG works out for you mate and holds at about $6 after the divvy payout.  Best wishes.

[winner (n)]

Costco into car sales

Doubt Todd that worried

https://www.nzherald.co.nz/business/costco-prepares-to-launch-car-sales-in-nz/BVM4FGSRYZBJXKKME6YDXHPG7Y/
Maybe paywalled

[Basil]

https://www.cnbc.com/2023/12/05/billionaire-charlie-munger-wanted-his-kids-to-hold-onto-3-parenting-lessons-until-their-100th-birthdays.html

Interesting story that has some vehicle angles to it.  I reckon Todd and other senior management treat their employees and customers fairly which is one of the keys supportive of the success of Turners.   

[Ferg]

Costco into car sales

Doubt Todd that worried

In business 'deep into something' is better than 'wide into everything'.  Agree - likely not a big threat.

[LoungeLizard]

Hmmm..what new devilry is this? SP below inclusion price and with a dividend to come in January. Very low volumes so is someone playing games I wonder?

[seaweed]

Index inclusion happens over 10 trading days usually with the peak demand in the last few days and more specifically the last 15 minute match price process on Friday 15 December..  We know approx. 2.2 million shares must be brought so I think buyers are biding their time.

Hope HLG works out for you mate and holds at about $6 after the divvy payout.  Best wishes.

Must be little sharesies taking profit. HLG looking pretty sad today.

[Waltzing]

wonder if the instos have been burnt with HLG and are dreaming up a new approach...

but what could it be...

[winner (n)]

Now for the NZX20 ha ha

How Turners used three simple goals to reach the NZX50

https://businessdesk.co.nz/article/markets/how-turners-used-three-simple-goals-to-reach-the-nzx50
Prob paywalled

[Basil]

How Turners used three simple goals to reach the NZX50
Rebecca Stevenson | Thu, 07 Dec 2023

Turners boss Todd Hunter says momentum is hard to get, but once you have it, it's very powerful. (Image: Turners Automotive Group)

And now, the NZX20.

Turners Automotive Group has joined the club of 50 and officially now counts as one of the S&P NZX50 Index firms with the 50 largest market capitalisations on the New Zealand stock exchange (NZX).

It's been a long-held goal for group chief executive officer Todd Hunter and chair Grant Baker and brings with it the cachet of being among the NZX's best and investment from NZX50 Index tracking funds.

Hunter said the Turners team toasted the milestone with a few quiet beers on Friday.

Epitome of an overnight success

The company has garnered public attention in recent years because of its popular Tina from Turners ads. However, Hunter said reaching the NZX50 was the epitome of an overnight success that took years to achieve.

Hunter said he jotted some goals on a piece of paper at an off-site planning day in 2017.

He wrote: $5 share price, $50 million pre-tax profit, NZX50.

"And now we're pretty close to ticking off a few things on that list."

How did the Turners team achieve their goal?

Hunter said each of the Turners' businesses had three or four things to focus on that everyone knew about and would work towards each year.

He said you must keep the goals clear and not have too many. Someone in Invercargill should understand how they can keep the business winning.

"We have 700 people in this business, and they all need to do different things. But they all need to bubble up to doing the most important things. I will say to people, if you're not spending time on those three or four key strategic priorities, you shouldn't be doing what you're doing."

This year, for example, it is sourcing capability (yes, those Tina ads urging you to sell your cars, cars, cars). 

It's Turners' branch extension (it has signed a new property deal for Tauranga and is doubling its footprint in Napier and can sell three times as many cars). 

And it's increasing "our operational cadence and efficiency". 

"If we do those three things, job done."

A merger

Let's rewind to 2013. Then, listed finance company Dorchester Pacific was upping its stake in what was NZX-listed Turners Auctions, with Baker, then Dorchester chair, signing off on the NZX notices.

That year, Hunter said Turners had lost a major client in insurer IAG, and the company "made something like $6 million", had profit downgrades and had to let some of its staff go.

"We were just at the start of transitioning that business out of being a wholesale auction-focused business into trying in trying to be a retail end-user focused business ... at the time, it was super challenging."

Dorchester also wanted a transition from what was a troubled finance company that fought to survive the infamous second-tier lending collapse, which saw South Canterbury Finance and Hanover Finance, among others, fail.

It wanted all of the Turners business as it looked for ways to increase auto lending and offered Turners shareholders $3 a share in a successful takeover bid.

The firms merged under a new Turners ticker name at the end of 2014, with Dorchester's Baker still the chair and Hunter, the boss of the Turners Auctions, part of the newly merged business.

Former Dorchester boss Paul Byrne said that at the time, the company recognised the inherent value and goodwill in the Turners moniker, which had a lot of history and affection attached to it.

Focus group research highlighted many positive values associated with the Turners brand, including words like trust, integrity, reputable, honest, well recognised, "Kiwiness", championing the public, heritage and longevity, he said.

The Baker effect

Hunter said Baker had an enormous impact on the business. He said the pair "were good foils for each other".

"I spoke to him on Monday afternoon, and he said, 'We're in the 50 now we've got to get in the 20'," Hunter said.

"He's a person who's going to push you along. We all want to do well here. But he has a different perspective. I have a great relationship with him, and I think the way we operate with the whole board is they all have quite big personal stakes in the business. They care deeply about it, which I think is great for alignment with other shareholders."

Those other shareholders now include about half the Turners team.

Hunter said the 50 landmark belongs to them.

He said the company had focused on staff engagement, and because of its highly engaged team, the business was running much better than it had five years ago.

"It's really cool to see them get excited about the company doing well, and they can see their own shareholdings growing, and it's just like anything – positive momentum is such a valuable thing. It's really hard to get, but when you have, it's so powerful."

[Ferg]

Thanks for sharing Basil.

He wrote: $5 share price, $50 million pre-tax profit, NZX50.

Someone tell Todd to write down $20 SP, $200m NPBT & NZX20 pronto.

[Whome]

Hmmm..what new devilry is this? SP below inclusion price and with a dividend to come in January. Very low volumes so is someone playing games I wonder?

Trying to decide whether instos are playing Game of Thrones or The Hunger Games - one or the other. Run up to 15 Dec will be interesting if PE remains around the present level.