Only if you're trader or a sad sack kinda guy/gal. I will take the 7% yield and pro active enthusiasm of management to refine and grow this company, leading and biggest in its field..
Only if you're trader or a sad sack kinda guy/gal. I will take the 7% yield and pro active enthusiasm of management to refine and grow this company, leading and biggest in its field..
This is a good management always looking to improve and pay good cash dividends so I think treat it as a dividend long hold stock won’t hurts
Wasn't that long ago many were extoling the virtues of their business model being multi faceted. Will be much easier to value now. Just look at earnings from the car operations and apply one or two PE lower than Colonial Motors, (lets face it their track record has been far superior) and QED you'll have fair value.
Percy, I’m a bit disappointed that Todd didn’t sound you out about these changes and get your endorsement
These days it is an imperative to get key influencers on board from day one when you do big things. Just makes acceptance that much harder.
They’ve missed out here ...which is a worry as one of the key platforms for the future is getting closer to the consumer by way of the internet.
[QUOTE=winner69;760909]Percy, I’m a bit disappointed that Todd didn’t sound you out about these changes and get your endorsement
So am I....................
I understand your thinking and if TRA board would have been a bit more committed to the business they created I think the plan would have more than likely work out. We would have seen healthy growth in profits by now.
Sadly as I observed earlier, I can not help but see similarities between the performers of Grant Baker while chairing TRA and the wagging kids at my school many years ago.
http://www.stuff.co.nz/business/indu...Oxford-Finance.
We know what they bought it for, but do we know what they will sell it for??
So who will but Oxford Finance, Geneva ?
Maybe HGH would buy Oxford Finance,,and then Turners' MTF shares, before making a full takeover for them [MTF] too.!
We must remember TRA buying their blocking stake in MTF,stopped any takeover of MTF a few years ago.
MTF would still make a good fit with HGH's Marac.
Heaps more I hope because today it is an amalgamation of several businesses -
On 1 May 2018, Dorchester Oxford Limited, Oxford Finance Limited, Southern Finance Limited and Dorchester Finance Limited were amalgamated to become Dorchester Finance Limited which changes its name on amalgamation to Oxford Finance Limited.
It strikes me as really odd that for as far back as I can remember management and the directors have been singing the praises of an integrated sales / finance / insurance and more lately service model. What we appear to have here is an admission this doesn't work and / or is too capital intensive and Baker et al want some of their capital back in a trade sale of the finance and insurance divisions. Basically this is capitulation on a plan they've been working on for years and they want to get back to absolute basics.
HGH might finally get the acquisition they've been talking about for all these years.
Well the annoucement was both good and interesting (not bad... interesting)
I agree, for a good chunk of time the 'one stop shop' model was touted quite extensively, and they seemed to have followed our government of the past 18 months and have done a very sharp u-turn on what was once pushed for so hard - this is the interesting part of this mornings announcement. I personally never thought EC Credit fit that well, so this was less of a surprise.
The good part was the (now?) core business (cars and car insurance) performed well in FY18... having a quick look at the top and bottom line it seems this core business is solid...
AUTOMOTIVE RETAIL
FY17: Revenue $192.7m, Operating Profit $15.4m
FY18: Revenue $223.2m, Operating Profit $16.6m
FY19: Revenue $225.7m, Operating Profit $18.3m
INSURANCE
FY17: Revenue $13.7m, Operating Profit $0.9m
FY18: Revenue $46.9m, Operating Profit $5.7m
FY19: Revenue $48.5m, Operating Profit $8.2m
Say in FY20 we have a 'bad' year, and there is no operating profit growth in either division - even ignoring the other divisions (Finance and EC Credit) Turners is at a PE of 8.0 (before tax)
No guidance provided which was to be expected when a couple of arms of the business are under review (and may, or may not, be part of the future turners)
And the presentation didn't seem to have quite as much good vibe and lots of pretty pictures that FY18 of FY17 had...
Is that a sign of the times? I don't know