Originally Posted by
Beagle
I warned before on the HBL thread that the sort of no deposit unsecured lending they are doing through Harmoney and certain franchise dealers would come with higher delinquencies. My experience with finance companies leads me to suspect that they only provide for or write off loans when the "maggots are crawling out of the carcass" rather than when the loan starts to look really, really sick. Apologies for the graphic nature of that inferred image but that's the truth of what I've seen so I suspect we've only seen the tip of the iceberg with this problem so far.
Hopefully for Turners shareholders sake I hope they know the basics of making sure the borrower has a decent amount of skin in the game...but if delinquencies in this area are growing strongly when the economy is good, I wonder what would happen if things turned pear shaped with the economy ? I guess this explains why vehicle companies and banks always have a well below market PE, an element of cyclicality to their earnings that always needs to be born in mind. It continues to surprise me that some experienced investors who should know better than to hold these shares in a confirmed downtrend of nearly a whole years duration still cling on in there. Good luck to holders but I see no reason to reinvest have no interest in trying to pick a bottom.
P.S. God's honest truth I typed all this before realizing that they'd just hit a fresh 52 week low on Friday at $2.85...ouch, sorry, I genuinely am not trying to rub salt into the wound, last time I looked it was $2.95 but you have to wonder when does the pain end for poor beleaguered shareholders ???? How long does one keep holding a surely and steadily losing proposition... "Never own shares in a confirmed downtrend" KW..she's a wise one.