In which case it will pay a great quarterly dividend and I will be happy with that.
Still on my watchlist and I agree about watching TA. What on earth is going on in consumers minds that is supressing demand in the vehicle industry ? Its a hard one to figure but with TA you don't need too. Looks pretty grim across the Tasman too. https://www.caradvice.com.au/731211/...february-2019/
I'll be pleased when the buy back is over.
Every day there is a new market announcement and I eagerly expect a positive market update. But no. Just a few thousand more shares bought at an ever decreasing SP
Buy backs results in each shareholder owning a bigger slice of the cake.
Turners directors, who are already large shareholders, understand this well,and I expect the low prices being paid to buy back shares, will see the buyback extended.
That would make good sense to me.
Talked to another used car dealer (son of a good friend) yesterday to get a feel of what's happening out there.
He runs a very successful small yard - 20 to 25 vehicles at a time - mostly Japanese imports which he sources through his agent in Japan. He also deals in ex-demo from the European marques.
Nothing new, I don't think but -
The used car market has slowed down a lot in the last 6 months and is extremely competitive with far too many players who do not know what they are doing. An added problem is that new car prices have been discounted and some new car dealers have been stuck with too much stock after playing the game of ordering additional stock to get the volume rebates at end of quarters. He cited BMW as the worse example - why there are currently plenty of ex-demo BMWs around for sale.
Margins in used cars were fantastic 5 years ago (as high as 50%+ with the el-cheapos very high mileage under $5k cars) but year by year, margins have been dropping to the extent that it has become too 'dangerous' to be holding too much stock.
Many smaller players have left the game - there will be a war of attrition until the sound and well operated ones remain. The smaller players quitting stock as they leave the industry is putting additional short term pressure.
Asked him about Buy Right Cars - his view is that the company's huge stock and overheads will be bleeding money during the current shake-out period.
Read and take it for what it is worth.