TRA - Turners Automotive Group

[SuperMario]

Patience my friend.  Very quiet on GTK so far today which is also going into the index. 

The fireworks display commences at 4.45 p.m.  Stand well clear or get involved, the choice is yours's.

The other thing is for whatever shares you choose to keep you are holding the baby and she's incredibly beautiful and her name is Tina 😊

Any ideas on how to maximise the fireworks we get involved with?

[seaweed]

LOL.  Where to now for sp. I am completely out and thank you Bas. I'll buy you a drink at the next meeting.

[Pierre]

Bit of a fizzer today - only $4.68.

[Basil]

I think it's safe to say we were all hoping for more and $4.68, only 2 cents north of the share price on the day of the official announcement of inclusion was somewhat disappointing.

That said, in all my years of following these inclusion events, this was without doubt, in the period leading up, the most widely anticipated index change I can ever recall and it was clear to me a long time before the official announcement that the process was a foregone conclusion so to be honest, I expected a lot of the premium was already built into the price. That said, like everyone else, I am a little disappointed there wasn't a bit more juice in this on the day.

I think at a time like this as the business year draws to a close it pays to have a little recap and be philosophical.  Firstly, for those that followed me in when I backed up the truck properly @ ~ $3.50 a few months ago, inclusive of the 6-cent divvy received in late October, you're up 35% in just a few months in a flat year in which the NZX50 has gone nowhere.  Objectively, I'd call that an outstanding result by any measure.  Even those that bought late last month @ ~ $4.20 just before the half year report have seen an 11% gain in less than a month, not too shabby either.

Those holding, (including myself with a very large shareholding remaining after a portfolio rebalance), at $4.68 will get a 6 cent divvy next month and based on consensus eps brokers forecasts of 40 cps in FY24 and 42.3 cps in FY25 are looking at undemanding forward PEs of 11.7 and 11 respectively.  Attractive metrics for what is undoubtedly a very well-managed company on a clear pathway of growth in the years ahead.

There's also the attractive and growing yield to enjoy along the way, paid quarterly and consensus is for 27 cps next year in FY25, fully imputed which is 37.5 cents gross giving a forecast yield of 8% (8.01% to be precise).

No matter whether you chose to rebalance and sell down a bit today or on another day in the index inclusion process, or hold on to all the shares you have, I think everyone is a winner.

Merry Christmas folks.

[KW]

Job well done there Basil. 

[Buzz]

Job well done there Basil. 

Yeah ditto, well done Basil, you called it a long time ago and no one should sniff at 30% gains, regardless of how the final closing auction turned out.

[Basil]

Thanks guys.  Time for a few cold ones.  It's been an interesting year.

[Mos]

Still holding out for the $5 celebration. Might be a while.

[Shareguy]

Well done Basil and others who picked this stock.  Still a great result. One of the top performers on the nzx this year.
 
Congrats.

[winner (n)]

Now the excitment is all over what is a 'realistic' price for TRA going forward

I reckon at the moment the share price is heading into the over priced territory ...definitely if it went much higher ...see chart

But we haven't seen the impact of being picked by a few gurus in the Brokers Tips thing next week

You cannot view this attachment.

[Dolcile]

What's the relevance of BV when the land and buildings aren't at fair value?

[BlackPeter]

What's the relevance of BV when the land and buildings aren't at fair value?

Are you just stirring or would you have any evidence?

[winner (n)]

What's the relevance of BV when the land and buildings aren't at fair value?

I could guess what fair value is and 'adjust' accordingly

And your comment could easily be 'what's the relevance of BV when there's $163m of intangibles on the balance sheet'

[Dolcile]

No not stirring.  What I should have said, is, what is the relevance of BV for an entity like Turners?

[winner (n)]

No not stirring.  What I should have said, is, what is the relevance of BV for an entity like Turners?

A large part of the business is finance/insurance/property related ...i reckon BV is relevant for these type of companies.

So are PE ratios relevant then?

Price = Earnings X PE .......ROE = Earnings / BV ......... P/BV ratio = Price / BV ........ put all that into a mixing pot and give it a good stir and see there is a relationship between the PE and P/BV ratios

Dolcile ...besides all that what do you consider the main relevant things we should be looking at in Turners