CBL Insurance IPO

[Joshuatree]

Just the one sell down, in april 2017 when MD and chairman sold a combined 10.4 mill shares , 4 % of the company to increase "liquidity" and repeating how healthy the company is. And FNZ increased holding from 5% to 6% plus in Jan 2018, they will be spewing along with the rest of us.

[Baa_Baa]

Anyone observing the share price of CBL will note how its share price started dropping away from end of July 2017.

Well spotted, and the daily SP drop in early August was a gap-down, quite precipitous on the day at the time, which indicates some were 'in the know', then 6-7 weeks of further downside .. ergo the selling continued. It wouldn't be obvious anything was particularly wrong to uninformed shareholders, possibly a conundrum as to why the SP weakness? Despicable, with hindsight considering the timings referred to re RBNZ awareness etc.

What a shambles. This stuff rocks ones confidence in the NZX as a platform for transparent markets.

[peat]

I took a squiz through the last six months and sure its easy with hindsight but there were a few clues for people.
The first one really was that interim profit with the large increase in reserves.
Then later the CFO resigned.
Then there was some more announcements about reserves.
These were all ominous

Also I remember someone whose opinion I valued saying to me something very dubious about this company after those first reserve adjustments. Along the lines of un-quantifiable risk.
That Christmas presentation was a real doozy too huh. Made me feel a bit thick tbh, when I read that.

Guess I am - thick enough to have considered this company but not thick enough to invest.

[Beagle]

I took a squiz through the last six months and sure its easy with hindsight but there were a few clues for people.
The first one really was that interim profit with the large increase in reserves.
Then later the CFO resigned.
Then there was some more announcements about reserves.
These were all ominous

Also I remember someone whose opinion I valued saying to me something very dubious about this company after those first reserve adjustments. Along the lines of un-quantifiable risk.
That Christmas presentation was a real doozy too huh. Made me feel a bit thick tbh, when I read that.

Guess I am - thick enough to have considered this company but not thick enough to invest.

Hindsight its always easy. I'm not an investor so my interest is purely academic but there's no real clear TA signal that good TA skills would have got you out, that's scary.
Further, nothing unusual about reserve adjustments with insurance companies so I doubt your first point would have raised too much concern.
Secondly CFO's resign from time to time for personal and career advancements or retirement so its not all that often I see that as a point of concern e.g. Rob McDonald resigning as CFO of AIR and me selling my shares in AIR late last year are pure coincidence, I don't think the new guy has such a great personality on the conference call but it certainly hasn't put me off.
The further announcement about reserves came in February right ? or perhaps I haven't looked at the timeline carefully enough ? Much time to consider one's options then was there ?
This will have come as a major shock to seasoned and well respected fund managers like well respected Harbour Asset management who at least in theory as a major shareholder have access to bending the managers and directors ears other that at annual meetings so if they got it wrong I think your average Joe Bloggs who also got it wrong can forgive themselves for not being perfect ?
I think the few clues that were there were pretty faint and far between. RBNZ's actions in keeping their long standing enquiries confidential is surely the matter that's the bone of contention to chew on ?

[Lola]

I took a squiz through the last six months and sure its easy with hindsight but there were a few clues for people.
The first one really was that interim profit with the large increase in reserves.
Then later the CFO resigned.
Then there was some more announcements about reserves.
These were all ominous

Also I remember someone whose opinion I valued saying to me something very dubious about this company after those first reserve adjustments. Along the lines of un-quantifiable risk.
That Christmas presentation was a real doozy too huh. Made me feel a bit thick tbh, when I read that.

Guess I am - thick enough to have considered this company but not thick enough to invest.

There was another big clue.Namely
The sell down by Harris and Hutchinson (discharged bankrupt) in April 017 virtually moments after their shares came out of escrow. The lame reason given at the time viz : “ to increase liquidity “ was actually crap because the buyers were only a few.

This whole mess will keep a lot of lawyers buzzing with excitement as they contemplate the potential for fame and fees. Interns line up!

[winner69]

I do feel (a bit) for Carden the CFO. He resigned in November and gave 6 months notice and is still in the office. No doubt he has working through all this **** of late and still puts his name to most announcements

CBL Managing Director, Peter Harris said, "On behalf of CBL I would like to thank Carden for his significant commitment and contribution to CBL over the last 10 years. He is leaving on good terms and not planning to take up another position, and his last day will be 30th April 2018."

Been around long enough .... maybe he did see the writing on the wall ...but thats just pure speculation

[Brain]

If the CFO couldn’t see the writing on the wall then nobody outside the company could possibly be expected to see it.

[peat]

Hindsight its always easy.

Yeh absolutely. Not suggesting otherwise but its still educational

Weird thing is I havent even looked at the chart until you mentioned it Beagle.
But of course there was a huge warning. That precipitous fall of a whole dollar (nearly 25%) in the space of six weeks last August. And the recovery from that never even reached 50%.

At least I hope this company gave off enough bad vibes that anyone who had it didnt jump in too hard.

[minimoke]

I do feel (a bit) for Carden the CFO. He resigned in November and gave 6 months notice and is still in the office. No doubt he has working through all this **** of late and still puts his name to most announcements

CBL Managing Director, Peter Harris said, "On behalf of CBL I would like to thank Carden for his significant commitment and contribution to CBL over the last 10 years. He is leaving on good terms and not planning to take up another position, and his last day will be 30th April 2018."

Been around long enough .... maybe he did see the writing on the wall ...but thats just pure speculation

Maybe he was locked into a deal to keep him inside the tent for as long as possible

[Balance]

I do feel (a bit) for Carden the CFO. He resigned in November and gave 6 months notice and is still in the office. No doubt he has working through all this **** of late and still puts his name to most announcements

CBL Managing Director, Peter Harris said, "On behalf of CBL I would like to thank Carden for his significant commitment and contribution to CBL over the last 10 years. He is leaving on good terms and not planning to take up another position, and his last day will be 30th April 2018."

Been around long enough .... maybe he did see the writing on the wall ...but thats just pure speculation

https://stocknessmonster.com/announc...asx-2A1064940/

She saw the writing on the wall, in neon lights surrounded by glitter?