Soon it will be 420 friendly stock ...:p
Soon it will be 420 friendly stock ...:p
NZX Virtual Investor Preso
http://nzx-prod-s7fsd7f98s.s3-websit...803/404934.pdf
Beep Beep!!
I am sure that the new Christchurch branches will make it much easier for customers to get to them. The entrance to the one site they currently have in ChCh is easy to miss - and when you finally see the site, you missed it already and it takes a couple of k's additionally to turn around and potentially miss it again :);
But another two years to wait for the new sites ... hmm.
Ive bought a few cheap 4wds from turners christchurch for fishing some off road areas. I dont know why they need another site its huge. Probably lots to display the non auction sales?
The main Christchurch site is just off the south eastern corner of Hagley Park. It is leased from Ngai Tahu I think, and I believe our local tribe is getting a very good rental income from Turners. A few years ago when Todd was doing those whistle stop presentations around the country, there was a meeting there which I attended. I remember Todd saying at the time they had been looking to develop their own Christchurch flagship premises and just missed out on what was the old AB Cables site along Blenheim Road.
I don't think there is anything wrong with the Hagley Park location, although the lease dates back from the days when Turners was very much an auction business first and foremost. It would just work better for Turners if they are paying rent to themselves, rather than a third party. I expect that Hagley Park site to be closed down when Turners open their new Christchurch complex, wherever that may be.
SNOOPY
That makes sense. Timaru should be good, it is a busy place these days. If they make 50% of the stock old Hilux wagons and Patrols they would make a bundle, it's almost a right of passage to own a 4wd down south. Cars that were worth 5k 15 years ago can get double or triple that (even with the extra ks) I wish I had kept all my old Hilux's now. Get some of those on the ferry Todd.
I went into Turners Hagley today, I got the last car park available and the sales people were run off their feet selling cars.
Compare that to the 3 other car yards I went to... I was the only buyer at each. One even said it has been a slow few months. Not the case for Turners!
I don't hold the stock but they certainly looked like they were making money today.
That is great to hear Norwest...I hope your visit was successful for you and for Turners!
Our Christchurch branch expansion is very much around our vehicle sourcing strategy.
The closer our branches are to customers the more vehicles we are able to buy.
The more vehicles we buy the more we are able to sell.
Our branch network is strategically way more important on the vehicle sourcing side of our business than the selling side in many respects. When people are looking to sell a car they are effectively buying a service off us...and consequently it needs to be convenient. When people are buying a car they will actually travel a long way to get the right car at the right price.
Our Hagley Park location is the last of our old auction configured locations. 28,000m2 site with a big warehouse. We now prefer ~10,000m2 sites, easier to manage, not as overwhelming for customers, we can have more of these located closer to our customers, and 10,000m2 sites are much easier to find and less expensive than the big sites with big warehouses.
The two years will come around quick Black Peter!
Hopefully that makes sense.
I also wanted to offer the sharetrader Turners forum a Q&A with Aaron Saunders and myself. Not sure if that would be of interest? Please let me know if it is and I will schedule something in. We would run it online at around 530pm one evening.
Thanks Todd for communicating with us ST'ers. I for one would love the opportunity for a Q&A. Great idea thank you.
Thanks for the insights Todd. An after hours Q&A would be great. Here's a question for the event, subject of a bit of discussion on here.
What is Turners strategy for sourcing and selling more hybrid and electric cars? Does the NZ sourced car strategy mean Turners is in danger of being 5 years out of date? Selling cars people don't want (they sold them after all) and not cars they do want?
Certainly sounds interesting ... and potentially you could run that similar to an "investor day" or "investor event" some other organisations do once a year. I wouldn't see, why this couldn't be run completely online to keep the organisational effort at a minimum.
This would (with NZX notification) avoid the risk that some other investors might complain afterwards about having been kept out of the loop.
In case you are running out of questions for such an event - I am sure, this is something where we can help :) ;
Thanks Todd, that would be fantastic!
From the gossip column in BusinessDesk. Seems worth while pumping miei cash into supporting our Liam.
Turners Automotive Group chief executive Todd Hunter points out that “humble” NZ racing driver Liam Lawson doesn’t have a daddy to buy him a Formula 1 team.
Instead, he has been lending his star power to Turners when he’s in the country, appearing with its own TV star, Tina, on social media.
Lawson, who has been filling in for Aussie driver Daniel Ricciardo, has some loyal NZ backers, including Turners and Giltrap Group.
Hunter says Lawson is an understated winner, and the car company’s association with the driver is a “dream come true”. If Lawson does get a full-time seat in Formula 1, keeping the sponsorship going could be tricky,
Hunter says. However, he says Lawson and his team (yep, the 21-year-old has a team) are very conscious of repaying that support. “He's had some supporters, and he wants to be able to repay that royalty, which is great.
So hopefully, hopefully, we can keep sponsoring.” Hunter says Lawson has fought his way to the top on his own merits, and Turners will be there for the long haul, backing the NZ driver with cold hard cash. “He's incredibly driven, and he's never taken for granted the kind of opportunity that he's got. He’s a great person.”
Q&A be good
Nicely in the money already.....
https://www.nzx.com/announcements/420107
Dividend Reinvestment Plan Strike Price
Turners Automotive Group Limited (NZX, ASX; TRA) wishes to advise that the strike price for the Dividend Reinvestment Plan (DRP), operating in respect of the dividend payable on 27 October 2023, has been set at NZ$4.09 per share.
Yes, DRP participation can be particularly beneficial when momentum is in favour. Buyers on hand this morning at $4.26 so a good result, and a non-taxable benefit for most holders.
Larger holders can actually sell sufficient shares on-market now to effectively receive an early cash "dividend" and still be ahead once DRP shares are actually allotted (in this case on 27 October).
I am sure that ronaldson has been around long enough to know his stuff. Nevertheless, I think the language and the way the above post is worded is a bit misleading on the taxation status of the DRP. Tax is paid before the net amount is re-invested in the DRP. So I don't think it is correct to say the DRP is providing a non-taxable benefit for any holders.
Yes I know, the qualification that ronaldson gave of 'momentum being in our favour' is a nod to the share price rising once the DRP shares are allotted. IOW what ronaldson is alluding to is a free capital gain on the DRP shares. But if it was the intent of a large holder to sell their DRP shares and cash in on the 'capital gain' from the DRP, then I am sorry to say that such a capital gain would legally be taxable. So contrary to what anyone might think, that means there is no 'free lunch' from the tax man on offer here.
SNOOPY
Aye I was thinking the same thing Snoopy, thanks for mentioning.
The funny, grey world of capital vs. revenue account. A shareholder might own their shares on capital account, but if they elect to receive (and de facto acquire shares) from the DRP because there is momentum behind it and quickly sell them to pocket a capital gain, I wouldn't be surprised at all for the IRD (upon review) to take the view the DRP shares were acquired with the intention of sale for gain, and be enough for them to poke around other historic transactions. just my 2c.
Gosh the IRD can be harsh. Best I keep all my TRA shares :p
Why sell the DRP shares? Just sell some of the ones that gave you the dividend.
Correct. I am simply pointing out that if you sell shares after the ex-date you will receive cash (after T+2) before the DRP shares are allotted/vest. So you are definitely not "selling the DRP shares" per se.
And given that the calculation to issue the DRP shares is invariably at a 1%, 2% or 3% discount to a weighted average market price based mostly on five trading days, this can be advantageous. We live in a society where not all "gain" is taxable. You are certainly neither evading nor reducing your tax liability on the dividend (which is likely to have imputation credits/withholding tax attached/accounted which may in turn be more or less than your ultimate individual tax rate ). And your share sale need not match the amount of the dividend but can/should be greater or lesser depending upon your needs.
Insight investor relations advisor James Schofield says he believes that that Turners Automotive Group is knocking on the door of inclusion in the NZX 50 index in December 2023, according to analyses by NZX Limited, Jarden, and Forsyth Barr Limited
https://autotalk.co.nz/turners-knock...-nzx-50-index/
i was looking at the register , it appears not many index funds on there at last report
Yes that is right. Basil on the stock talk site has been promoting this for last month or so. A good company but might wait for the dust to settle before grabbing anymore. But in the short term will grab some more HLG running into the next Div of 24c at 8.35% yld. and 10.73 PE. I think TRA may drop back a wee bit after inclusion like HLG did with all the short term profit traders. HLG dropped about a dollar in the week following inclusion. Should be quite interesting. But in saying that, I would top up with TRA at $3.80 to $4 if it dropped back there before or after inclusion.
TRA share price not far off all time high of $4.61
That’ll be a good day
Whatever Turners ‘invested’ in Carly it’s been written down to $230k
Suppose using Carly resources to get the subscription business up and running was key and the ‘real investment’ at the end of the day
share price topped out ? anyway i see used car prices have started there decline again recently in the US , i believe we do have a correlation to them
Buzz gone here too, just like the rest of the market.
Good to see Bartel (Director Petrie) leaving their $600k dividend in the company …taking DRP
Almost all here are certain of Index inclusion and subsequent pop in the SP .....just fail to understand the need of the sellers bringing SP down from 4.28 to almost $4 ...is it some game or opportunity for further additions ??
Wondering when will be $ 5 party ? In few weeks or more time needed ....hopefully few weeks please !!!
Dont see the inclusion helping much. What has it done for HLG? Nothing major in the long run- after initial pop
Just a general observation - people and organisations with large holdings (including funds and so called "smart" money) find it much easier to sell when the market expects positive news.
Maybe just some large investors proactively rebalancing their portfolio to avoid later on the rush to the exits?
No doubt - after the inclusion party it will be difficult for large holders to rebalance such an illiquid share.
I wouldn't read too much into the selling pressure other than maybe - some smart money thinking that the current price might well be fair value.
Agree with your thoughts that nothing to worry on the business side ...but when and if inclusion happens then we will get super high vols also ...if HLG example is something to keep in mind ...HLG equally illiquid ...had 1.7 Mil traded ...very easy to exit at that time I think ...so maybe Dec 3rd week will be high vols week if it gets included on 2nd Dec announcement
Smart money not waiting is also possible they maybe not expecting inclusion this time around ??
Just repeating what I read in the reports, nothing more
W69 ...if TRA does cross $ 5 then will join u all at Mr B 's boat party ....fingers crossed and holding breath :p
What are the chances ? First over $ 4.50 on HY results rest on index inclusion announcement ??
released this week used car prices in the US still falling
https://site.manheim.com/en/services...lue-index.html
How many days to Index Inclusion announcement ? W69 is counting it by seconds I am sure ...maybe first is 22nd HY results ...which they have already flagged is better then anticipation ...they have announced a floor but upside surprise is still OPEN ...so still good chance of that .
W69 here and Mr B there getting super excited ...:p
.https://www.tradingview.com/symbols/NZX-TRA/technicals/
Not sure if I am stretching here but wonder if 2CC’s new focus on margin and lift in their pricing is having a positive impact on TRA and their volumes. Appreciate they play in slightly different segments and price points but can’t be a bad thing having one of the larger competitors lifting their prices.
less than i thought- i assume they are talking about the used car market when they say 4.5%. not of the total market
https://www.nzx.com/announcements/412150
2 Cheap Cars grew its market share for the 12 months to 4.5% , up from 4.4% in the same period last year.
The business sold 8,367 vehicles in FY23 which is up 6% on the same period last year.
Yes to March 23 2CC reported 8,367 sales
Turners reported 19,500 sales plus another 18,500 from auctions
Suppose it’s what market segment you use to calculate market share
Thanks all. My thought probably was a stretch.
Volume of shares traded is increasing. The big boys buying prior to inclusion in the NZ50?
I am failing to understand the psyche of big sellers these days ? What thoughts they have to sell just before two super positive announcements ??
Fails me completely !! Any logical explanations can update my knowledge of the markets behaviour please
agree - if one wanted to sell - seems logical to want to do it on or close to index inclusion day based on trends seen from HLG/WHS/CEN & MEL (green index) inclusions. Not all selling holders will be aware of the index inclusion, maybe for some it is just their own cashflow situation & timing requirements, and plenty of holders have seen good gains at the spot price. maybe used car aficionados rebalancing into the 2cc excitement
Would expect to see higher volumes w/ the good recent momentum and traders buying positions early to sell into the index pop but for every buyer there is a seller and can only guess what the sellers motivations are. I'm not aware of anything more than that.
average daily volume over the last yr about 29,000 shares/pd
Last 5 sessions: ~32k (+10%)
Last 10 sessions: ~39k (+36%)
Last 20 sessions: 38k (+33%)
Certainly no where near where the volume we will get to closer to the day.
Pencil in for Wednesday morning....:)
https://www.nzx.com/announcements/421841
Weblink for Turners HY24 Results Presentation
Todd Hunter (Group CEO) and Aaron Saunders (Group CFO) will present the HY24 financial results followed by Q&A at 10:30am on 22 November 2023.
To register for the meeting please click the link:
https://turners.zoom.us/webinar/regi...QKG8ER5kdLlYNw
ENDS
Next 10 days will see two important announcements ...fingers crossed they go as per plan :t_up:
Hi there everyone wanted to schedule in the Q&A with Aaron Saunders and myself for this Friday (24/4) at 5pm. Link below for registration.
You can ask questions on Friday either through the audio function, or the Q&A function or you can email me any questions to todd.hunter@turners.co.nz
You are invited to a Zoom webinar.
When: Nov 24, 2023 17:00 Auckland, Wellington
Topic: Turners Q&A for Sharetrader Community
Register in advance for this webinar:
https://turners.zoom.us/webinar/regi...R0SqI304ByfFRQ
After registering, you will receive a confirmation email containing information about joining the webinar.
Thanks todd nice work
A cracker.
https://www.nzx.com/announcements/422080
good result , have a good read later but quick glance looks like auto going gangbusters esp margin expansion
A good result even though finance division is struggling with NIM dropping.
Finance not long ago generated more income than auto if i recall correctly.
If we are at peak rates the finance division is going to start generating much better returns and if auto carries on smashing it out of the park then we are in for some great years ahead with healthy increases in EPS and DPS
Yes a very fine result.
One thing that puzzles me is their commentary and conservativeness on the full year dividend guidance.
YTD declared divs of $10.5m is 56.8% of NPAT of $18.5m. Or in round terms 12 cents a share.
Last year first half divs of $8.67m was 50.7% payout of $17.1m. Or in round terms 10 cents a share.
NPAT current up +8% on last year, DPS up 20% or 2cps.
But the full year "at least" guidance of 24cps is only 1 cent more than last year or up 4%. If 24dps was achieved that would imply 2H dividends per share would have gone backward by 1 cent. Doesn't feel like a realistic outcome and 25dps for the full year would be achieved even if the remainder of the year repeated last years second half. And I'd hope for a bit of growth on top of last years result.
MGMT obviously balance the comment by saying "at least" but wonder if overly conservative and doing a very slight deserve by focusing on the gross yield at what would appear to be a highly conservative 24dps forecast.
I might be splitting hairs or perhaps missing something in terms of what is to come in the 2nd half (perhaps capex associated with the network buildout?)
Fully agree ...Nice result inspite of finance division under pressure ...so automatically it will become accretive when rates outlook / NIM improve ...something else to look forward to . NZX50 inclusion on cards ...shud propel it to $ 4.50 today or soon ...all must be rejoicing making money out of used cars ...Rawz did the best ...he has both beauties ...Percy too !! Well done mates :t_up:
PS : W69 / Mr B's plan working very fine ...$ 4.50 after results ...$ 5 after inclusion announcement ...Party time for all :p
I admire TRA as it has done well in spite of market conditions not because of them. Business has done a fantastic job with its brand, retail strategy, smartly developing and building out its network, etc. And I am hopeful the used car market by vehicle numbers has turned a corner (graph on page 6 of preso) which all else equal should provide a tailwind together with (hopefully) NIM tailwinds should interest rate recede at some point. Marketshare holding up and improving but one thing to keep an eye on is the # of registered dealers also looks to have bottomed and might be improving (page 7 preso) so will be important to watch those marketshare stats in the future, though the business seems to have the initiatives in place to improve marketshare to their 10% target.
Enjoyed the presentation this morning and always get a lot of confidence when I hear management speak. These guys are 100% across the business and good buggers to boot. Provided more flavour on what to expect on the 2h, some of the seasonality patterns relative to last year (timing of easter may bring down the month of march etc), and a reminder on the cyclone damage one offs earlier in the year.
$4.50 seems highly likely today, and certainly by week's end as this result is fully digested by Mr Market. And we will know by 1 December whether index inclusion has indeed been secured so further increase beckons, although given inclusion would not be a surprise you would expect index funds to have some preparitory strategy in place already.
My small holding of TRA is becoming a bigger proportion of the portfolio as the fortunes of TRA rise
had a good read of results now , got a few questions nothing major just some clarifications on stuff
Doing better then my expectations for the day ...Index inclusion is almost a done deal and will need appox 2.2 mil shares to be bought by local index funds like NZG / FNZ etc ...thats a tall task for TRA liquidity ...wont be surprised it gets squeezed to even $ 5.50 ...reason being who will like to sell such a future prospect ...hen which lays golden eggs ...why kill it !!! :D
Official …… Todd says guidance is FY24 full year result will be ahead of FY23
That means full year will be ahead of $45.5m (npbt)
Rolling 12 months (H223 + H124) is $47.8m
Seems Todd is teasing us all ……Turners not going backwards in H224 is it …..even in this ‘macro environment’ …..he may as well come out now and say it’ll be $50m …or if he wants to be conservative could just say ‘close to $50m
Never mind, share price on fire …it’ll be well over 5 bucks after Christmas ….maybe even approaching 6 bucks
Good results..
Their risks page doesn't make much sense to me though. Surely the risk is rapid interest rate changes not just that interest rates will increase rapidly. Wouldn't a sharp drop in the OCR cause short/medium issues considering they have a high level of interest rate hedging?
W69 ...when will u bring out your super sized holding of TRA to the market ...please help us understand what is possible ahead ...U have much clearer crystal ball then most of us !! :p
Glad I bought in last week.
My daughter has a nice little proportion of her portfolio in Turners for a while.
Beep Beep!! :)
Should be compulsory for all shareholders and would make ideal Xmas presents for the family.....:t_up:
TINA FROM TURNERS - TEE – Tavlova
Is this an ALL TIME HIGH