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I took a leaf out of your book...
Surely you're not saying value should have been realised in 5 weeks.
So_Cynical said:
TGA - Thorn Group
- Thread starter McCoy Pauley
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I took a leaf out of your book...
Surely you're not saying value should have been realised in 5 weeks.
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How is a stock that is:
- trading @ ~ 8*P/E,
- consistently growing,
- carrying very little debt ,
- with great management,
- and paying a great dividend
classified as 'mediocre'?
I could understand if it was at a higher P/E ratio, but it's because it's trading so cheaply that it is attractive.
I think you're being a bit hard on TGA, S_C. Too good a track record to be classed as "mediocre", IMO, particularly when there are so few other stocks setting the world ablaze at present. As for the high level of interest, some of us are somewhat fascinated by the depth of analysis/forecasts that this stock receives. Good reading, indeed, particularly for us of the pre instant coffee generations!
I have been doing plenty of stock screening over the last couple of weeks and to be honest nothing is particularly grabbing me at the moment. TGA is the only stock I hold at the moment and I have large % of cash ready for an opportunity.
IMO, some of the retailers are being oversold but I am going to wait a bit longer until it "feels" like maximum pessimism about retail.
Pioupiou, keep up the good work.
IMO, some of the retailers are being oversold but I am going to wait a bit longer until it "feels" like maximum pessimism about retail.
Pioupiou, keep up the good work.
Its odd that for a "mediocre" stock that by definition should have over a thousand better stocks on the ASX, it is so difficult to find comparable investment candidates that meet my criteria to warrant the same degree of focus that TGA has merited. I have often asked for names of a comparable investment, and only three have been suggested, but none of them beat TGA in terms of my personal criteria. Not finding candidates reminds me of Abraham bargaining with God, who finally agreed not to destroy Sodom and Gomorrah if even ten righteous people lived there. Being less demanding, I would be delighted to learn of five stocks worthy of the attention that I have devoted to understanding TGA.
I do not want this thread to drift away from its TGA theme to discuss other stocks, so if you open a new thread with a name like "On par with TGA, or better", we might generate mutually beneficial communication. For instance, readers have recently suggested IMF, RCG and CPB, and I have not responded because this is not the place to do so, and if I responded in the stocks individual threads, we would lose the cohesion of considering a handful of stocks that we who are over invested in TGA can consider as diversification options.
tech/a
No Ordinary Duck
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While TGA may well be fundamentally strong it's performance
Over the last 12 mths has been very poor.
Infact worse than mediocre.
Over the last 12 mths has been very poor.
Infact worse than mediocre.
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Interesting balancing statement to Pioupiou's posts (which I've read in detail).
The question that's playing on my mind, assuming a GFC2 scenario that lasts 12-18 months, is whether TGA earnings will be robust in that time. Grateful any views but my memory from GFC1 was that Cash Converters (CCV) did very well in a similar space during GFC1.
Performance as in its price or fundamentals?
tech/a
No Ordinary Duck
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Price
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Sitting in Dublin airport waiting for my delayed flight to Zurich and being amused and amazed at some of the twaddle posted by many of the sciolists that love all this numbers stuff.
There is only one value on any stock and that is its price.
The majority of this fundamental wishing is akin to thumbing a ride in a car that is parked on going the wrong way and you are hoping that it will turn around and go your way because you really like the car and know all about its technical specs.
Until it starts going your way(the price) all your homework is irrelevant (but very amusing however).
So the price is the price and that is its value, and hence one should not waste one's time looking for bargains. I wonder if Warren Buffet knows that, because the silly old fart has wasted decades buying stocks and companies that he thought had greater value than their asking price!
I like the car analogy. If fundamental research informs me that a car is normally garaged in Boggo Lane, then irrespective of what direction it is now facing, I have a high level of confidence that it will most likely end up in Boggo Lane, irrespective of wherever it might meander in the short term.
I wrote that I would be delighted to learn of five ASX listed stocks that are better than TGA. Actually, even one would suffice. Do tell.
I held about $50K's worth of CCV about two years ago, which I sold at a 20% capital gain. I prefer TGA because it is a 100% Australian play, it is not into pay-day lending, and it is a rung or two higher than CCV on the grubbiness scale, and hence less prone to be affected by government policy. TGA, being a poverty stock like CCV, did very well in what you called GFC1, and that is why in these gloomy times I feel comfortable with TGA.
If I had a lazy $50K looking for a home, I would investigate CCV again, and a few other poverty stocks like CCP, but alas, I am a tad cash strapped right now, so I have not investigated CCV recently. I think the politicians have become bored with the proposed legislation to curtail pay-day loans, and if that threat depressed CCV's SP, there may be scope to make a buck or two, but I repeat, I have not looked at CCV recently.
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That sounds good - no need for homework at all. Should've bought some Enron shares as they were going up...
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and then hold them on the way down too because management told you last month that their fundamentals were good compared to last years even though reality (price action) was telling you the real story !
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Their financial statements tell me the real story, along with business model, financial statements, etc. What management tell me doesn't mean much unless it's backed up by other information.
Anyway, pointless argument. You seem set in your ways, not really willing to hear another opinion.
Right, because all a FA does is go 100% by what management says? Before you criticize something maybe you should understand it first.
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My SMSF says that its SKI craps all over your TGA and guess what, the price (realtime actual value) is going up - scary eh !!!!!
Is this the same company that was worth more five years ago than it is now?
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I actually like this company while not holding. But this statement above is ridiculous, you can't be serious?
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I believe he means in regard to value for price paid.
