TGA 0.00% $1.17 thorn group limited

Maurice Blacburn say that up to 200,000 TGA customers may be...

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    Maurice Blacburn say that up to 200,000 TGA customers may be eligible for compensation, and the sum of $50m has been mooted as a potential payout value. That is, $50m ÷ 200,000 = $250 per litigant. I would be gob-smacked if as many as 10 TGA customers could be found who were denied the option to purchase the goods leased under Rent-Try-$1-Buy leases that expired. In all likelihood, none would be found, not even the lead litigant who may not have a legal basis for her complaint.

    The period in question is 28 March 2011 and 29 March 2017. TGA's customer base is about 100,000, and the term of Rent-Try-$1-Buy leases in that time would have been circa three years (it's a bit longer now). Leases written since 28 March 2014 would, on average, not have run to expiry by March 2017, which implies that a high proportion of all Rent-Try-$1-Buy leases written between 28 March 2011 and 28 March 2014 were flawed in the sense that TGA disallowed customer offers to purchase the goods.

    TGA has a high percentage of clients who extend their business with TGA on lease expiry (nearly half of all lease expiries attract new lease originations). Also, the customer demographic has a tendency to rely on reference selling by satisfied kith and kin. To think that these two sources of lease originations would exist if TGA routinely reneged on its deals is illogical.

    On the matter of one large seller of TGA, one never knows why a seller sells shares – it could be to raise money for tax, divorce, give an SMSF the wherewithal to make mandatory retirement payments, release funds from a deceased estate, et cetera. In contrast, people buy shares for only one reason, they think they are a bargain. As for substantial investors, the three Change of Substantial Holding Announcement this calendar year favour the buying side – they are:

    • 21 July 2017, Investor Mutual Limited increased its holding from 13,461,669 (8.50%) to 16,322,006 (9.62%).
    • 1 March 2017, IOOF Holding Limited sold from 11,139,748 (7.115% ) to 9,526,614 (6.020%).
    • 24 January 2017, Investor Mutual Limited increased its holding from 11,471,857 (7.43%) to 13,451,559 (8.50%).
 
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