South Canterbury Finance Limited

[The Doctor]

'Advances went up by $160m (good for a growth company) but $106m of the increase was to related parties. So advances to other parties (the reason they are in business I would have thought) only went up $54m (4%'.....

when did the govt guarantee kick in?

[Misc]

October 12th 2008

[winner69]

Suppose Hubbard/Southbury can afford to prop up SCF .... they've taken $57m in dividends out the last 2 years .... best part of $100m in the last 4 years and leaving a small amount as retained earnings

Not too bad for a $45m investment topped up with another $25m in F2008

The poor old perpetual preference shareholders (who probably didn't know they were buying equity anyway) have $120m invested and over the last 2 years they have only got $15m of the profits

Good on AH making the most of this money machine

[Misc]

You still considering buying some prefs Winner69?? LOL .. looking more and more like Hanovers 'big brother here' .. doesnt it??

Misc

[Balance]

Chris Lee, the Kapiti Coast stockbroker, reckons SCF is okay and market does not understand how strong SCF and AH are. Reckons advisors telling their clients to sell out of SCF's bonds have questionable judgement.

http://www.chrislee.co.nz/index.php?...July&year=2009

[macduffy]

Cris Lee is probably right although he has been known to make mistakes, like all of us!

If I held the pref shares I wouldn't be selling at these prices but I won't be buying either. There's enough excitement in buying equities without also taking high risks with fixed interest investments, especially ones as opaque as SCF seem to be.

[Steve]

There was an interview with AH in the Independent this week in which he touched on some of the related party lending.

[Dr_Who]

Any finance firm with related party lending is a SELL in my books.

[Misc]

The Govt Gaurantee is 'goneski' for SCF by October by the look unless they can reduce related party lending to under $15m (based on previous posted article). That would have the effect of collapsing Southbury , as despite SCF saying the related party lending is 'some of their best lending' , its unlikely other lenders would see it that way. Perfect Storm for Alan Hubbard??

Misc

[winner69]

Misc ... those loans to Ellis look a bit of a mess eh

Interesting they seem to have caught up with a few woeful hawkes bay developments ... is that the Kelt connection going a bit of track