South Canterbury Finance Limited

[Misc]

Shasta , yes would be a real shame if it folded , but reminds me of the 'once proud' NZI that got caught up in the reckless lending spree of 1986/7 and nearly bought it to its knees , no institution escaped the 1987 meltdown intact , and this time round its far worse imo , so at very least SCF will have to write off hundreds of mills of bad debt and can really only be saved by the Govt , if they chose to do so. Hard to fathom why Hubbard took his hand off the rudder here. I can see the only finance companies enduring being those bank owned entities like Marac et al , which can only harm the property sector and the economy in the next year or 3.

M

[biker]

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

And watch the political mayhem if the Govt backed out of their guarantee- regardless of the fine print, and especially SCF. Not to mention the implications for the Australia Govt guarantee as well. No, the tax payer is firmly behind SCF and besides, the outfit isn't actually in dire financial trouble anyway.

[The Doctor]

certainly showing some familiar symptoms....for a finance coy...thats not in trouble!

[Contrarian]

Gidday

Let's look at some other issues.

Recently there was consensus that there was only two rock solid finance co's Marac & SCF.

Long successful history.

Main man the richest south islander est $650 mill.

Not quick,showy boomtime money. A conservative gentleman, similar to Warren Buffett.

Talk of a possible one notch downgrade sends you guys into a "the sky is falling" mode.

IMHO there won't be a problem. Time only will tell.

[winner69]

............. Hard to fathom why Hubbard took his hand off the rudder here.

M

..... all part of the succession planning strategy the board has (so they say) ..... heck the guy is over 80 apparently .... prob still sahrp as ..... but life expectancy falls by the day

[COLIN]

Gidday

Let's look at some other issues.

Recently there was consensus that there was only two rock solid finance co's Marac & SCF.

Long successful history.

Main man the richest south islander est $650 mill.

Not quick,showy boomtime money. A conservative gentleman, similar to Warren Buffett.

Talk of a possible one notch downgrade sends you guys into a "the sky is falling" mode.

IMHO there won't be a problem. Time only will tell.

Good to see a dose of realism being brought to bear, at last! I have watched all the reef fish darting towards the shallows while I shake my head in disbelief. It can only be non-Mainlanders who believe that SCF "is going down." And, believe me, I would have to be one of the most sceptical when it comes to assessing the viability of the non-banking sector - SCF is miles removed from your Hanovers, Bridgecorps, et al.
But all this hysteria has provided me with some wonderful buying opportunities in SCF. Thank you.

(By the way, Marac is NOT bank-owned, as someone has claimed in an earlier post. It is owned by PGC, who have been talking about getting a banking licence but I would suggest that they might have other pre-occupations right now, the way PGG is looking.)

[winner69]

But all this hysteria has provided me with some wonderful buying opportunities in SCF. Thank you.

Bonds etc are at times good trading things ..... glad to see you taking the opportunities with the likes of HBY and SCF Colin ..... these things get beaten down more than shares quite often and provising liquidity OK worth dabbling in

[sharer]

.....
(By the way, Marac is NOT bank-owned, as someone has claimed in an earlier post. It is owned by PGC, who have been talking about getting a banking licence but I would suggest that they might have other pre-occupations right now, the way PGG is looking.)

The one owned by ANZ is UDC.

[Steve]

To clarify on a point made a few days ago regarding lack of disclosure on related party lending etc, does listing debt securities require a lower level of on-going disclosure than listing equity securities?

Both markets are run by NZX, so I would have thought the same rules apply?

[Contrarian]

Gidday

No disrespect to sharer only a 2 year newbee, I was scanning the left hand margin to see how long we have been kicking around, I've been here for seven years OMG! & even before that on the previous format,
COLIN here for 9.5 years !!

Hope you are all well & doesn't time fly when you are having fun?