TRA - Turners Automotive Group

[KW]

The market knows why the stock is being sold off, it just hasnt revealed the answer to you yet.  But it will. 

[Basil]

We'll see.  Percy seems to think the selling pressure is because one larger investor has died, and it might be his estate selling.  You'd struggle to find another so well managed company on such compelling metrics on either side of the Tasman.

P.S. They report on 21 May.

[Waltzing]

Lots of stock held up today including this one...

[lorraina]

Weblink for Turners FY24 Results Presentation
Todd Hunter (Group CEO) and Aaron Saunders (Group CFO) will present the FY24 financial results
followed by Q&A at 10:30am on 21 May 2024.
To register for the meeting please click the link:
https://turners.zoom.us/webinar/register/WN_Zqo5c_sKTwaIcgm7IWpEBg

[Waltzing]

with s winter of increasing unemployment will new car sales take a hit or will pressure come on the second hand market...

would have though both but new car sales might get hit harder... be interesting to see the stats.

Over on economy article out today in the herald on just how bad it is for sheep farmers in rural NZ...

[Waltzing]

well this is what we imagined when drawing a pastel line across the bottom ....

[winner (n)]

Pretty damning article in NBR about dealers and breakdown insurance in general

Car dealers earning big on 'junk' breakdown insurance
https://www.nbr.co.nz/business/junk-breakdown-insurance-products/#comments

Probably paywalled

Just as well Turners don't just add MBI to the any loans they make to poor punters

But seems an 'industry' problem that needs fixing

[winner (n)]

See Kathmandu got Liam Lawson on board ....his Kiwi spirit and track prestige blah blah blah

https://www.kathmandu.co.nz/

Will Liam do for Kathmandu whatvTina did for Turners ...doubt it

[Waltzing]

If the economy is crashing then second hand should be the way to go ...

[Basil]

Turners report on 21 May, next Tuesday and I am expecting another record result of circa $49m before tax, a 7 cent fully imputed dividend to be announced and I expect they have started the new financial year well.

Metrics at this price level, (I will update after the result) are very attractive considering their proven ability to grow market share with their multi award winning "Tina" marketing campaign.

[Waltzing]

Waiting .... fabulous ... but since the NZX is flightless and grounded expect the share price to popup ... and then ....

[Basil]

Hi everyone time for me to step in again.

Not sure how this image was taken, probably not worth digging into that. This is basically a buyers guide for our car buyers and steers them on the cars to avoid (known mechanical issues...we get this data from our insurance business Autosure + experience) and who they need to get approval from internally to buy cars. Your comments are completely off the mark sashadidi. It doesn't signal anything about how tough or otherwise it is for Turners. What is does signal is that demand is shifting down the price point curve and moderating above for more expensive cars ($20k and above). Unsurprisingly used cars remain resilient but consumers have less to spend...it isn't rocket science and something we have been talking about for 18 months now. This internal document simply helps ensure we source cars where the demand in the market is and avoids the known problem cars...and we are doing this quite successfully as well.

As at the end of March the value of our inventory was down but stock units up. Mar-24 3,465 units @ average price of $7,200 (FY23 3,021 units @ average price of $8,600).

Interesting post from Todd Hunter on the other channel late this afternoon.  Emphasis added.  Superb stock management in my opinion and really encouraging to see them adapting in a meaningful way, (their business model), for the current financial conditions.  Disc: I added a few more today and firmly believe the pullback is well and truly overdone.  Looking forward to their report on Tuesday.

[Waltzing]

That answers the question thank you about the market we posted above... maybe he also checks here to see what everyone is worried about ... maybe? or does not have the time.. Anyway thats what we wanted to know... great inforamtion to have!!! Thats almost a pre market update!!

Thanks ..

[Basil]

That answers the question thank you about the market we posted above... maybe he also checks here to see what everyone is worried about ... maybe? or does not have the time.. Anyway thats what we wanted to know... great inforamtion to have!!! Thats almost a pre market update!!
Thanks ..

Yes it is especially in tandem with Turners monthly stat's just released showing dealer to public sales up a very solid 8.5% in April 2024 compared to the same month last year, (will be stronger growth than that for Turners with ongoing market share gains).  Don't forget guidance was recently upgraded too. 
Seems to me Todd saying used car sales remain resilient has real meaning behind it, unlike a lot of talk by other companies, (i.e. Todd doesn't do corporate double speak or creative B.S. and he has the owner's eye on the business with his family-controlled interests owning ~ 800,000 shares)

[Buzz]

Yes it is especially in tandem with Turners monthly stat's just released showing dealer to public sales up a very solid 8.5% in April 2024 compared to the same month last year, (will be stronger growth than that for Turners with ongoing market share gains).  Don't forget guidance was recently upgraded too. 
Seems to me Todd saying used car sales remain resilient has real meaning behind it, unlike a lot of talk by other companies, (i.e. Todd doesn't do corporate double speak or creative B.S. and he has the owner's eye on the business with his family-controlled interests owning ~ 800,000 shares)

Who needs Tina, when you've got Basil doing the promo for free