South Canterbury Finance Limited

[Enumerate]

On another note - who was it that got the SCFHA's at 10c on opening yesterday - then bumped back to 15c before closing which coincides with SCF's end of financial year?

I'll confess to taking out the parcel at 15cents.

Luck bugger who picked them up at 10cents! Amazing. It must have been Bernard Hickey selling down from his SuperFund.

[minimoke]

Luck bugger who picked them up at 10cents! Amazing.

Alls not lost - another wee parcel through today at 10c. You'll need a fast finger by that BUY button.

[Enumerate]

Wow - someone just dumped 400k SCFHA into the bid side. If you dump these at 10cents you clearly believe that receivership is an inevitability.

Maier and the board have until 31st August to capitalise SCF. This is the first "hard" deadline. It will either happen (and will deal to the "wall of maturities") or it won't.

I think we are in for a bit of a roller coaster ride over the next few months. There may be some happier news - but there will also be darker days ahead.

[minimoke]

Maier and the board have until 31st August to capitalise SCF. This is the first "hard" deadline. It will either happen (and will deal to the "wall of maturities") or it won't.

Though yesterday was a "soft" deadline - no announcement. Now I know AH will have had his mind on other things but if SCF had someone in the wings ready for a 30 June announcement then that deadline has gone. AH has given the market a commitment to make an announcement - I would have thought that SCF should update the market on those negotiations so why the silence?

[Enumerate]

AH lost all ability to negotiate or to announce once the Statutory Management took effect. At that point any 30 June "soft" deadline evaporated.

Thinking about it, maybe that was what the 400k holder was waiting for? No announcement - dump at any price.

[minimoke]

In todays news Sandy Maier is saying SCF has been battered by the AH Stat Man. Seems SCF can continue to pay maturing investment's "for now". Reinvestment take ups have slowed and South Islanders are being urged to put their money with SCF - if the money doesn't come in SCF won't survive.

In the meantime SCF survives solely with the support of the Ext Dep Guarantee - with their rates significantly higher than competitors. SCF is at 8% while
- Equitable = 5.7% / 5.9%
- F & P 6.75% or 7.25
- Marac 6% / 4%
- PGG 5.95% - 6.45

If you had cash why would you not be flocking to SCF - probably because punters realise that the significantly extra interest isn't worth the risk of having their deposits tied up for who knows how long in the event of the Dep Guarantee kicking in.

[Marilyn Munroe]

Uhoh!

'Investigation hits new investments'

http://www.stuff.co.nz/timaru-herald...ew-investments


Boop boop de do

Marilyn

[Snapper]

"If you had cash why would you not be flocking to SCF - probably because punters realise that the significantly extra interest isn't worth the risk of having their deposits tied up for who knows how long in the event of the Dep Guarantee kicking in."


Look at it this way - punters are getting a 2-3% premium for having some uncertainty about the exact timing of the return of their funds, not too bad really.

[minimoke]

Look at it this way - punters are getting a 2-3% premium for having some uncertainty about the exact timing of the return of their funds, not too bad really.

I'm not so sure if the premium is worth it if you are a Mom and Pop investor or some retiree. These people need to know where their income is coming from - they may not have extra cash to support their life styles while they wait for a Guarantee scheme to return all their cash or all the paper work which is bound to be needed if a call on the Guarantee is made.

In the meantime if they do give their cash to SCF they may be just propping something up which can't be propped up after the guarantee runs out. If they are being asked to support a finance company perhaps they might do society a bigger favour by putting their money into a company that has more certainty of a long life. The loss of cash flowing into these "better" finance companies may be exposing them to undue and needless stress

[Alan3285]

... punters realise that the significantly extra interest isn't worth the risk of having their deposits tied up for who knows how long in the event of the Dep Guarantee kicking in.

Don't we all know exactly how long?

Govt Guarantee - Clause 2.2 - Payment within 14 days


Alan.