PGC - Licenced to Bank

[Dubdee]

Misplaced panic over torchlight loans to SCF perhaps?

[gonzo56]

"Misplaced" being the operative word.

In a statement on Friday, PGC said Torchlight considered the funding facility an excellent investment.

“Our facility, being secured ahead of other charges under the Trust Deed, is particularly robust, and our investment is well secured and profitable.”

[Logen Ninefingers]

I’m confused...
Can someone please explain why this is being sold off?
It hasn’t been this low before, so that means whoever is selling will be loosing out on a lot of money. Why not ride it out? They either have no balls, or know something we don't..

Yeah, but they can sell now, and buy back in when the price gets a lot lower. So are they losing money, or freeing some money up to buy more shares? Surely the aim is to have the strongest possible portfolio by controlling as many shares as you can with the money you have available.

[gonzo56]

Interesting, that make sense. I was thinking about doing that a while back, but too late now, I dont wanna be left out in the cold.

[winner69]

Shareprice movements are not generally influenced by 'small investors' .... global research shows that generally 10-20 shareholders are the ones who influence price.

NZ is such a small market and the companes are so small that liquidity does become an issue so that does not always apply to NZ

PGC has major shareholders who are unlikely to be selling but there are a few instos on the books who could be influencing the price currently

Whatever selling pressure on above average volumes is not a good sign .... somebody wants out for whatever reason .... and that somebody is probably not stupid .... he needs cash in a hurry or he knows something or belives that this is not a good place to be at the moment

You guys (esp Balance) have nearly convinced me that PGC could be a great investment ..... but I have been waiting for the signals tp buy since 50 cents plus ..... still waiting ..... so if no skeltons in the cupboard looks like I be getting more shares than I thought

[Logen Ninefingers]

I've been guilty of leaping in and buying at times when I should have stepped back and waited. Hopefully I've learnt my lesson now....I certainly aim to be a lot more judicious from now on and not rush to buy all the time. This thing about not buying into down-trends is so well known now that as soon as the SP starts to slip it almost becomes a self-fulfilling prophecy...everyone reckons everyone else will be thinking the same way so you need a piece of big positive news to correct the slide.

[percy]

Well,well,well.Marac pays $70mil cash for GMACNZ's motor book.

[bull....]

On face value is it a good announcement ?

For one they are increasing there market share thats good - but theres plenty of risk in it .

To quote GE and GMAC who both mention similar problems with the industry ( We are leaving the industry because of rising costs of funding also the financial impact of collapsing car sales, and falling car values, which have caused huge losses on car leases.

Also wheres the growth going to come from ? Consumers are becoming more debt consious now and if we get a double dip recession as some people believe may be possible wont the whole segment get worse?
Where are they to source funding from for this increased market share? Off shore , S/H , the reserve bank ?

looks like Marac is trying to replace property financing part of there business ( which is in decline ) with more consumer financing to maintain there profit.
But does it translate into higher growth and profit by gaining a higher market share in a consumer consious segment? Sometimes the answer is no it will depend on how it is managed and I presume they will have to manage it better than GE and GMAC to translate it into higher profits.

Lots of ifs and risks in my opinion

[percy]

looks like Marac is trying to replace property financing part of there business ( which is in decline ) with more consumer financing to maintain there profit.
But does it translate into higher growth and profit by gaining a higher market share in a consumer consious segment? Sometimes the answer is no it will depend on how it is managed and I presume they will have to manage it better than GE and GMAC to translate it into higher profits.

Lots of ifs and risks in my opinion

Yes Marac is out of property financing.Marac has always been very successful with motor and consumer finance.It does translate into higher growth and market share,and profits.I changed my mind and brought more this morning.

[mouse]

Yes Marac is out of property financing.Marac has always been very successful with motor and consumer finance.It does translate into higher growth and market share,and profits.I changed my mind and brought more this morning.

From a ShareMonger or ShareBroker?