PGC - Licenced to Bank

[GTM 3442]

haha GTM3442, tell me what u own then i shall buy that

geezy - by a strange fluke of chance, my only direct holdings are in SVY & TRS, I think I'm immune !

[Newman]

I felt horrible thinking about my money as soon as I saw that. I sold all my shares at a loss of $7500 from the original price, but I'm alive so I really can't complain. I hope they rescue a lot. How do you think the market will react? Both PGC and PGW were down 3 cents as soon as I checked.

Does anyone have any idea of the likely amount of money PGC, Marac, or BSH lent to the businesses and housing in Christchurch?

[percy]

Does anyone have any idea of the likely amount of money PGC, Marac, or BSH lent to the businesses and housing in Christchurch?

Sorry,I do not know.Banks and finance companys do not lend on uninsured chattles or property,so should not be a problem.I expect there will be good demand for their services from people wanting to make the most opportunities the rebuilding will offer.
To find out the answer to your question,go back to BSH and PGC announcements and they give a lot of brakedowns to what and where their loans are.

[Balance]

Sorry,I do not know.Banks and finance companys do not lend on uninsured chattles or property,so should not be a problem.I expect there will be good demand for their services from people wanting to make the most opportunities the rebuilding will offer.
To find out the answer to your question,go back to BSH and PGC announcements and they give a lot of brakedowns to what and where their loans are.

Good lending policies mean that loans must not only be secured but cover by insurance as well.

[percy]

Good lending policies mean that loans must not only be secured but cover by insurance as well.

Thanks Balance,good to have you putting into words what I mean.!!!!

[corlemar]

Hi folks, i'm relatively new to the forum, though i'd be interested to know if anyone has any thoughts on why PGC shareprice is performing so poorly in relation to NZX given the market has headed north over the past 12/18mths yet PGC share price has gone south, despite a change in management ?

[SCOTTY]

Hi folks, i'm relatively new to the forum, though i'd be interested to know if anyone has any thoughts on why PGC shareprice is performing so poorly in relation to NZX given the market has headed north over the past 12/18mths yet PGC share price has gone south, despite a change in management ?

Hi corlemar.

In my humble opinion, NZ investors view of a business is very short term - they are impatient. They expect everything to happen in about 2 - 3 months when the time frame should be considered in years as would be the case in say the USA.

I suggest that you have a look through this site and see what you are buying for (at todays price) 30c. What will these assets be worth in say 2 -5 - 10 years time. Will BSHL be a successful bank? What will the residual assets be worth? What is a reasonable valuation of these assets today?

I think that maybe these assets are selling at a big discount as the perception is that as a Christchurch based business the assets have been lost in the earthquake. I think only about 13% of the assets are in Canterbury (and as previouse posters have rightly noted, these loans will probably be well covered by insurance). Would not a locally owned bank have attractive prospects in NZ, especially in Canterbury during a re-building process. I have had a couple of "red medicines" so maybe I am seeing things through distorted glasses!!??

However, I have been putting my money on the line with this one.

Cheers

[Xerof]

Corlemar,

To balance the biased, wait for the downtrend to end before entering this stock. Mr P might enthuse on this aspect

These guys have talked it up since the rights issue and it really has only gone one way..... recent proclaimed purchases are down 20% on their investment in the space of a month or so, adding to already underwater investments no doubt

And having G Kerr influence shouldn't inspire any confidence either

[iceman]

Hi corlemar.

In my humble opinion, NZ investors view of a business is very short term - they are impatient. They expect everything to happen in about 2 - 3 months when the time frame should be considered in years as would be the case in say the USA.

I suggest that you have a look through this site and see what you are buying for (at todays price) 30c. What will these assets be worth in say 2 -5 - 10 years time. Will BSHL be a successful bank? What will the residual assets be worth? What is a reasonable valuation of these assets today?

I think that maybe these assets are selling at a big discount as the perception is that as a Christchurch based business the assets have been lost in the earthquake. I think only about 13% of the assets are in Canterbury (and as previouse posters have rightly noted, these loans will probably be well covered by insurance). Would not a locally owned bank have attractive prospects in NZ, especially in Canterbury during a re-building process. I have had a couple of "red medicines" so maybe I am seeing things through distorted glasses!!??

However, I have been putting my money on the line with this one.

Cheers

Scottie, very well spoken/written. Many good and well considered "arguments" have been put forward on this thread and after carefully reading all of them, I have purchased some BSH into my portfolio. I agree with your conclusion that this is a company that has been sold out of all proportions, due to the terrible Christchurch earthquake and the perception of the effects on BSH.

[Balance]

Herd them down and mop them up. Ably assisted by the receivers of HFM selling down the HFM portfolio of South Island stocks.

Excerpt : "Meanwhile PGC, after it has passed on the CBSH shares to PGC’s shareholders on a pro-rata basis, and sold its 19.9% stake in PGG Wrightson’s, and perhaps sold Perpetual Trust, will end up with a pile of cash and a hedge fund. I would see PGC then as George Kerr Inc. Kerr is a fast-moving dealmaker unlikely to want his ideas subjected to the sort of disclosure and compliance that a public listing would imply. Such impediments might suffocate. So the final step might be a takeover bid for the shell of PGC, liberating Kerr to focus on the sort of high risk, high return transactions that have made him his wealth."