The SP has bounced around the 7c level for years following the massive write-offs from the failed foray into the finance industry. I fail to see the investment case.
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I wonder how much peer-peer is impacting the unsecured personal loan market? I assume that the farming sector would be largely in this arena? Harmoney's lending rates seem lower than the traditional finance companies. Perhaps ALF would do better to work through Harmoney, just as Heartland and TradeMe do?
Livestock financing is a very profitable sector,and ALF are achieving strong growth, with their finance operation.
Yes HGH are also in it,however we must remember ALF are closer to farmers than HGH.
The half year result dated 26th February is worth reading.
With respect...100% wrong. The "foray" into the Finance sector via Hanover (Not Prime which was a flea invested dog) actually saved Allied. Not nice for shareholders I agree, but those assets acquired for paper provided a breathing space and a bridge to the survival we see today. Perhaps a name change to Phoenix Farmers Ltd would be appropriate?
Care to elaborate? The fact that Hanover failed immediately is a sign to me that Allied Farmers Management team didn't full understand the business they were about to take over. Now, It might be a good move for promoting there core business with services on the side..But we are right at the end of the Macro credit cycle. To me this is a signal that there are significant defaults ahead. Allied Farmers just got themselves out of debt.. Wait until the credit crunch hits and make the acquisitions then I say.
Just my honest opinion, interested in your view point :)
It would be helpful if posters read up ie read AFL reports, before they commented,or made judgements, based on things that happened years ago,and which have nothing to do with ALF's current directors,staff or business.
Just to clarify a for you NeverQuestion, about 1 or 2 years ago ALF moved into offering the service of financing deals for those buying/selling livestock. Up until then, they had to engage a 3rd party to do it.
In speaking to Garry Bluett when he was Chairman, he assured me this initiative did not involve ALF becoming a financing operation per se. No financing for the the buying and selling of, real estate, farms, or anything other than livestock.
The benefits of doing this enabled ALF to:
* Arrange the deal without needing a 3rd party approval.
* Offer better terms than the 3rd parties out there.
* Close the deal much faster for all.
* Make some money out of the deal instead of the finance companies making it.
* Strike a deal between a livestock buyer and a seller that would have otherwise not occurred.
For other readers (as I am sure you are aware of the following NQ), initiatives recently undertaken by ALF are:
* introduction and continuous improvement of their MyLiveStock App
* Live Steaming from Auctioneering Sales Yards with the ability for remote viewers to practically buy and sell on the spot
* Have acquired other agencies and are continually looking for more
* Expanded into Northland
* Expanded into the South Island
* Considerably growing their numbers of agents
* Raising a bit of capital for the future, and In the process, effectively performed a share buy-back of approx 2% of the shares on issue
* Reducing NZX costs by eliminating the tiny shareholders from the register