who gains from VIK talking down DPC?
I think it was Robert Heinlein saying "never underestimate the power of human stupidity" - but I am still wondering who could gain from VIK talking (and selling) DPC down? For every seller there must be a buyer - and over the last months a continuous flow of DPC shares changed hands.
Just imagine somebody might be interested in a takeover (the NTA does not look to bad - 186 cts for a 90 cts share!, and some of the business parts (reverse mortgage) look like growth) - wouldn't it be clever if somebody else invests a bit of money to first talk and sell the shareprice down?
Any idea where all these shares (sold by VIK and others) are going?
For full STL rating report see link
St Laurence’s B2 Credit Rating Reaffirmed
11th October 2007
http://www.stlaurence.co.nz/archive....tID=1&report=1
Property-based finance and funds management company St Laurence Limited (SLL) has had its B2 investment grade rating reconfirmed from New Zealand credit rating agency Axis Ratings Limited.
Axis Ratings performed a full quantitative and qualitative review on St Laurence Limited providing an updated rating on the company, and its secured debenture stock of 12 month maturity from the date of the report (16 September 2007).
Axis Ratings says the B2 rating reflects that St Laurence Limited is of “good quality” and “generally moderate risk”. SLL is currently operating at 70% of its optimum potential and continues to perform well in comparison to its international peer group in the financial services sectors, performing better than 78% of its peers.
SLL managing director Kevin Podmore says the rating demonstrates the benefits of St Laurence's diversified finance and funds management operations (from acquisitions made in 2006) and its sound lending and financial position and performance. The rating also highlights St Laurence’s strong approach to liquidity management including ensuring that its average deposit maturities are longer than its average loan maturities.
In the current market conditions investors can have confidence that St Laurence Limited is well placed to meet its commitments. “This full credit rating is aimed at providing a guide for investors for the next year and takes into account more difficult trading conditions. Having our credit rating reaffirmed at B2 investment grade level given the more challenging market conditions we are facing is pleasing and a credit to our management team,” Mr Podmore says.
Mr Podmore says in the past 18 months the company has worked hard to prepare for tougher times by diversifying and strengthening its asset base, income streams, equity and liquidity. In 2006 the company acquired a number of funds management entities to transform itself into a diversified property-based funds management and lending business.
“We are different to other companies operating in the sector in that we have both funds management and finance operations. As a result the company receives significant income from wider sources of revenue, including long-term funds management contracts,” Mr Podmore says.
St Laurence Limited expects to continue to generate a significant portion of its overall income from non-lending income streams by continuing to diversify the businesses’ revenue streams in the next 12 months.
Other strengths noted in the analysis include sound debt management, positive profit performance, healthy return on capital employed and equity invested, and its solid solvency position.
St Laurence Limited recorded a net surplus after tax of $15.2 million for the year ended 31 March 2007, a significant increase from $5.4 million for the 2006 year. Total consolidated revenue was $49.1 million, an increase of 79.1% on the $27.4 million recorded in the previous corresponding period. Assets rose 44.6% to $327.6 million. The company now has total assets under management in excess of $1.2 billion. Equity for St Laurence Limited has increased by $33.3 million over the period, or 162% on the previous $20.5 million, resulting in a new equity ratio of around 16.4%.
The ratings evaluation also credited SLL for its strong board and executive management team, in particular its three independent directors enhancing the strength of the board and protecting external stakeholder interests.
The report notes the Company’s transparency and open communication with its investors, financial advisers and other stakeholders. St Laurence has recently completed its annual roadshow with presentations to around 2,000 investors and advisers in 11 locations across New Zealand.
St Laurence’s lending business is backed by mortgages over property or property related assets, with the average loan to valuation ratio across the portfolio 64% as at 31 March 2007. “St Laurence has well defined lending processes and an effective internally developed credit scoring system to assist in the loan evaluation and approval process,” according to Axis Ratings. Axis Ratings also commented that St Laurence’s overall growth in lending has been strong in more challenging market conditions.
The company has recently renewed its prospectus and investment statement with its latest financial information. As part of this update St Laurence announced that it has removed the ability for prior charges (such as those securing bank debt) to be registered in priority to its first ranking secured debenture stock.
Axis Ratings’ credit rating remains in effect until September 2008, unless withdrawn or amended by Axis Ratings before that date.