Thanks BP, you’ve summed up my confused thoughts !
Thanks BP, you’ve summed up my confused thoughts !
Doesn’t seem that long ago punters were paying a premium for the bonds because it seemed the hype was going to drive the share price way beyond 4 bucks.
Share price way off those expectations and about the same as it was a few years ago.
A casual observer would say something not quite right .....with the company that is
Not sure I would classify myself as a fully informed investor, but I do want another 10-20k of Turner’s stock. That’s why I took up the bonds as the SP at the time was running away a bit. I didn’t pay a premium for the bonds. So I am trying to decide whether to convert the bonds, or simply take the money and buy what I want on market. I think I am leaning towards the latter. Especially as we have an unknown month to work into the strike price.
You can't compare a company that's grown EPS 45% per annum on average for six years with Turners. You can compare Colonial Motors with Turners.
I think the issue is that Turners MUST stop issuing new shares to fund their growth. I calculated on the weekend just approx. 4.5% eps growth forecast for FY19 this year because the estimated weighted average number of shares on issue for FY19, (assuming half bondholders convert to shares) is considerably higher than FY18. Maybe in FY20 they can grow organically and generate some decent eps growth without even more shares on issue or maybe this government sends us down a rat hole into a deep recession, who knows, but I think that's why the shares are trading on a forward PE of just 9.75. Maybe a bit cheap but try telling Colonial Motors shareholders that.
Yes the underlying business is doing very well but they need to get tough on themselves and really commit to no more dilution.
Anyone knowhow difficult or what the chance of them improving their credit rating to get lower cost of capital is?