South Canterbury Finance Limited

[Snoopy]

BB,
My sources predict a very tenuous time for SCF. One source told me to get out quite a while ago....and I am so glad I did.

Old Alan Hubbard, he went to his cupboard.
To offer his farmer friends a loan.
When he got there, the cupboard was bare.
So they were marched off their lands, with a groan.

Surely Bermuda, it hasn't come to *t h i s*

SNOOPY

[Billy Boy]

BB,
My sources predict a very tenuous time for SCF. One source told me to get out quite a while ago....and I am so glad I did.

Greetings bermuda
My info suggest "tenuous times " for SCF but not Belly up Stuff.
Bitting the bullet stuff for the shareholder(s).
South Canterbury is much like the Southland mentality... A large
number of Do'er old buggers who will stick with things regardless.
Southland Savings Bank an example.
There is a lot of money stashed away in them's there plains.
(Blockhead will tell you)
I have some dosh in with them, comes due next year. So will be
under John'y Smirf's umbrella.
A man said " Could the Govt let them go broke ???" Interesting
thought......
Cheers old Son
BB

[winner69]

Intersting how the govt guarantee affects pricing of SCF bonds/notes

Those maturing before the guarantee end date yielding 7% but the 2011 ones are at 14% and the 2013 ones at 16/17%

Probably how the market sees the risk which could make it interesting if they go after more market money soon .... but suppose 10% and recomendations from the likes of Lee and others would get them over the line

Are those Perpetual Preference Shares government guaranteed?

[Snapper]

goes tits up...you get your money back...no interest of course.

You get interest up to the day of default

[sharer]

I would also like to know what effect the Govt guarantee scheme has on these, if any.
Unfortunately on IPO i reccomended them to a charitable trust i'm on, & recall we were told they were considered safer than govt stock at the time! Both we, & our advisor, assumed they were like bonds, didn't realise they apparently are just pref shares.

[biker]

goes tits up...you get your money back...no interest of course.

A good reason why you need to do your own research. Yes, all your capital back, but you do get all your interest as well. And SCF were still offering 10.25% for 18 months, after the guarantee came into effect.

[rainey]

Hmmmm high interest high risk

[biker]

Hmmmm high interest high risk

Zero risk (and you don't get that very often) when it is guaranteed by the NZ tax payer.

[Misc]

Zero Risk?? No such thing. Ever tried lodging a largish insurance claim , and seen a sudden loophole or force majuere or disclaimer appear? The Govt gaurantee is only as good as the reasonable disclosure of the companies state of affairs at the time they entered the scheme. If this was in any way 'fudged' then the Govt has their 'out'. Hence perhaps the near-term 'gauranteed' bonds 'gapping up' today?

M

[shasta]

Zero Risk?? No such thing. Ever tried lodging a largish insurance claim , and seen a sudden loophole or force majuere or disclaimer appear? The Govt gaurantee is only as good as the reasonable disclosure of the companies state of affairs at the time they entered the scheme. If this was in any way 'fudged' then the Govt has their 'out'. Hence perhaps the near-term 'gauranteed' bonds 'gapping up' today?

M

Totally agree Misc, its all in the fine print & no one reads it, cos they look silly if they do.

I had income protection insurance, with a 2 year no claim waiver for ALL pre-existing conditions.

I tried to claim in year 3 (or 4?) & guess what...

If your facing higher risk you really do need a much higher reward to compensate, & again i agree the Govt will have the lawyers ready to back out.

Would be a shame to see SCF go down (if it does) i thought it prided itself on not lending money to property sharks