South Canterbury Finance Limited

[Skelessi]

SCF has a AAA rating for investors in secured debenture stock and is considered to be in the top three or four safest finance companies in New Zealand. The topic here is [u]not</u> about the lending side of the company, but whether it would be a good company in which to have an [u]equity share</u>.

Certainly there are a few 'dodgy' companies which may yet 'fall over' but this is unlikely to be one of them. I think it is a little unfair to 'tar' all finance companies with the same general 'brush' of being risky in the manner rmbrave, Capitalistand a few others are willing to do. The gearing of SCF is in much better shape than most finance companies and it has a track record from 1915 of being run as a conservative 'money machine'.

I would certainly put it on the same footing as Marac (which is also in the top three or four in ratings) and that company is one of the prime reasons PGC (the holding company)is a popular share. I think Snapperhas the right handle on things.

If it does float, I would consider it to be fortunate that investors would have a chance to participate in a company in the finance field which historically has a proven solid background. After all, there are very few companies left in the NZX which remain "New Zealand owned and operated". Look at the banks - most are Australian and although very good investment prospects, leave a lot to be desired when it comes to the aspect of taxation of dividends.

It would be healthy for the NZX to have another share market opportunity such as SCF.

[winner69]

SCF has a AAA rating for investors in secured debenture stock and is considered to be in the top three or four safest finance companies in New Zealand. The topic here is [u]not</u> about the lending side of the company, but whether it would be a good company in which to have an [u]equity share</u>.

Certainly there are a few 'dodgy' companies which may yet 'fall over' but this is unlikely to be one of them. I think it is a little unfair to 'tar' all finance companies with the same general 'brush' of being risky in the manner rmbrave, Capitalistand a few others are willing to do. The gearing of SCF is in much better shape than most finance companies and it has a track record from 1915 of being run as a conservative 'money machine'.

I would certainly put it on the same footing as Marac (which is also in the top three or four in ratings) and that company is one of the prime reasons PGC (the holding company)is a popular share. I think Snapperhas the right handle on things.

If it does float, I would consider it to be fortunate that investors would have a chance to participate in a company in the finance field which historically has a proven solid background. After all, there are very few companies left in the NZX which remain "New Zealand owned and operated". Look at the banks - most are Australian and although very good investment prospects, leave a lot to be desired when it comes to the aspect of taxation of dividends.

It would be healthy for the NZX to have another share market opportunity such as SCF.

I was wondering how this thread started .... way back in 2005 Slelessi posted this ... and was quickly chastised by Capitalist for ramping .... ha ha

Of course the float didn't go ahead ... maybe cause Alan knew things mightn't stand up to public scrutiny .... but that was before the GFC anyway but the foundations of many finance houses were starting to crumble anyway

Amazing how things ahve changed in 5 years eh .... a AAA rating to going broke