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Bit of a disapointment today, South Canterbury Finance has anounced that it is not going to be listed.
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Maybe just as well as it didn't list .... initial rsponse would have been a soaring shareprice but may have ended up in tears
If what gaynor says today http://www.nzherald.co.nz/business/n...ectid=10583721 is an indication of what is going on i am glad i have gotten any cash in them ....
All those related party loans is ominious (70% of all loans) and my initial reaction of this outfit recently buying farms from related parties was a shiver down my spine ..... like were these farms bought at the height of the market etc.
The web of companies involved with SCF is a lot broader than i had imagined (never really studied it anyway) .... like 75% ownership of Kelt Capital (Sam Kelts drunken antics over the years are well publicised and sponsership of $2m horse races and provincial rugby teams always seem to be ego trips), Helicopter Line and strange names like Plum Duff Ltd
All good stuff that Hubbard is handing out personal guarantees and says he will satnd behind the company ...... but investors have put a lot of faith in one man
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One of those loans is a $15m one to Dunvegan Seadown .... a $1,000 company controlled by the CEO
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Oh imho what a mess, remember that the 250 year old Bank of Scotland went bust in 18 months with "flash Harry "type management.
You cannot f@rt against thunder!!!
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These must be a good buy at a 40 cents
SCF 09.42% Perpetual Preference Shares (SCFHA)
Colin .... interested
Last edited by winner69; 11-07-2009 at 04:16 PM.
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Gidday
Brian Gaynor has it wrong, They are 40 cents per share, They pay a "dividend" that is fixed & reset every year.
Last edited by Contrarian; 11-07-2009 at 04:16 PM.
Rgds
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Winner I remember you and I both said some years ago that no finance coy was big enough not to fail, including SCF and Hanover.
Well Hanover has gone and SCF is not looking good with all these dairy conversion related party loans.
Would not like to be a shareholder.
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I agree with Winner and Cap.
Last edited by Dr_Who; 11-07-2009 at 04:27 PM.
Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
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Originally Posted by Contrarian
Gidday
Brian Gaynor has it wrong, They are 40 cents per share, They pay a "dividend" that is fixed & reset every year.
Correct Contrarian a 'share' .... 40 cents odd for a 9.25 cents 'dividend' (this years rate) for a rock solid finance company not too bad
NZDX bit clumsy with their quotes .... reading it quickly suggests a yield
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Member
Gaynor has it mostly right , but the 40% Pref yield is poorly researched nonsense. The 'prefs' were sold at $1 each raising $120m a couple years ago. Ouch now 40c offered! That does partly reflect a reduced yield (they pay 2.3% above bill rate from memory) but is mainly shareholder panic , buyers are few.
Anyone touting Hubbard as a saviour (incl S&P) is seriously deluded. Hubbards main 'wealth' is in his holding of Southbury Ltd shares , and if SCF collapses , so does Southbury , and so does Hubbard , no matter how honourable he may be.
My pick is SCF will try to merge with Southbury and raise capital in the merged entity , there will certainly be a downgrade to 'junk bonds' and I cant think of any potential suitor who would perhaps inject the $250m or so required , unless perhaps the Govt or a seriously discounted sharemarket listing?
Wonder how Lachie Mcleod is feeling with a $15 loan from SCF secured by Southbury shares that are likely worth only 50% of their value now?? A rather large incentive to perhaps be a tad 'economical' with the truth as CEO?
This could get real ugly , imo.
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