Suppose that amount if buying isn’t ‘distorting’ the price
Turners will adhere to an established set of principles agreed with its broker that seek to ensure that the buyback does not distort the market price for shares.
Surely not!
TRA is a cut above the rest (or so I have been told).
The fact that the company and directors think that the shares are undervalued but one director sold shares (very very reluctantly, of course after much soul searching) only because he needed it for the restaurant, remember? Not because he says one thing and do another. :D
Turners rave about their 90% Brand Awareness and to some extent that 45% view them as most trusted used car dealer
But market share is only 5%
Very low conversion rate of awareness into sales.
But marketing never has to produce tangible results
you'd think with interest rates marching lower, than someone like TRA with a whopping 7.4% net interest yield (that's 7.4x the OCR today) would be really attractive... but clearly Mr Market not convinced TRA can keep paying such high dividends? Despite what TRA themselves have indicated (that they can continue to - and, probably, increase them)
I love Turners PowerPoint presentations
I think market is aware of the Elephant in the room which is Milford and their intentions to offload their stake. Until that time price will stay depressed, unless some other entity of keen to ad to their holdings.
Despite that, the latest OCR cut should find them favourable from yield perspective. There's an awful amount of money waiting to find good return especially from retirees as it earns next to nothing from bank deposits.
New Plymouth site opened with no advertising.NONE.
Going gangbusters.
And that is because of Turners brand awareness.
Each new site ,or relocated site, are turning awareness into sales.
Increased sales increases margin through the addition of insurance and finance.