PGC - Licenced to Bank

[winner69]

Not so.NTA of BSH 88cents.PGC ownes 72% so 300mil BSH shares x88cents x.72 =$190.08 mil.We were told assets going into BSH was less than half PGC's NTA so therefore still over $200mil in PGC.
I would accept $10mil lost,well maybe I wouldn't, but $50mil makes no sense to me. I think the CBS transaction was at near to their NTA so would have expected all parties did the deal at near NTA.

We are not trying to calculate a NTA for PGC percy ... rather the market value of PGC as it stands this week .... so we can see whether the shares are actually cheap or not

In that respect the market is valuing the BSH part at 71 cents a share ... if you got the BSH shares today from PGC they are still only 71 cents .... not the touted 88 cents

Makes sense?

[percy]

We are not trying to calculate a NTA for PGC percy ... rather the market value of PGC as it stands this week .... so we can see whether the shares are actually cheap or not

In that respect the market is valuing the BSH part at 71 cents a share ... if you got the BSH shares today from PGC they are still only 71 cents .... not the touted 88 cents

Makes sense?

Ofcourse you make sense,however I still feel the NTA of a finnacial stock is of great importance,and in the case of PGC/BSH if you understand that less than half the assets went into BSH it gives me a meaningful understanding of what assets are left in PGC.There is a huge difference on the return PGC can earn on $200 mil of assets rather than $100mil,in fact it is most probably double.

[SCOTTY]

Hi Guys

I'm with Percy on this one. NTA is very very very important. Without nta there is no assets and therefore no business. The shareprice of BSH does not particularly interest me at this stage as the market has yet to see business performance from the new entity on which to base future valuations. The nta of 88c is for now very reassuring for future growth and future valuations. As we know, traditionally financial institutions trade at a premium to nta.

[winner69]

Liz

You ever seen this - ASX report showing LIC discounts to NTA

http://www.asx.net.au/products/marke...aged-funds.htm

[ETC]

Percy I don’t see either PGC or BSH trading above their NTA in the near future.

To me PGC looks like the leftover scraps of a finance company, I’m dubious about the amount of residual value left and think they’ll have issues with cash flow now that MARAC has gone.

BSH is only a good idea at the moment. It’ll take time to see if management can achieve their stated goal of becoming a bank and grow their lending and borrowing.

The reason I bought into PGC was because of their intentions to become a bank and it also gave me a bit of exposure to rural growth through PGW. Let just say I’m a bit disappointed with this investment but am hanging in there as I’m hoping BSH will be the light at the end of the tunnel.

[percy]

Percy I don’t see either PGC or BSH trading above their NTA in the near future.

To me PGC looks like the leftover scraps of a finance company, I’m dubious about the amount of residual value left and think they’ll have issues with cash flow now that MARAC has gone.

BSH is only a good idea at the moment. It’ll take time to see if management can achieve their stated goal of becoming a bank and grow their lending and borrowing.

The reason I bought into PGC was because of their intentions to become a bank and it also gave me a bit of exposure to rural growth through PGW. Let just say I’m a bit disappointed with this investment but am hanging in there as I’m hoping BSH will be the light at the end of the tunnel.

I agree with you,but I usually find buying a sun umbrella in winter turns out to be a good investment.PGC/BSH will take a little longer than this summer,but I am sure in 2 or 3 summers time we will all be asking ourselves why we did not buy more.The bank will at some time trade at 3 or more times NTA.PGC should Ker run it will be interesting.In an earlier post I mentioned how quickly Ker raised huge money for Torchlight,and most have forgotten it was Ker's backing that led to the huge amount on money being raised for the recap of PGC. Ker is a deal maker,who made his fortune out of funds management businesses.I am sorry the light at the end of the tunnel is in fact a train coming towards us.!!!

[percy]

ETC,
I have been in the garden clearing my thoughts.The bits left in PGC offer someone of George Ker's background great opportunities for great growth without the need of extra capital.The property part fits with his property dealing experience .Property money from sold properties could be reinvested,or returned to shareholders.
Perpetual will continue on without the call for more funds.The speed in which Torchlight raised what $160mil and got it working straight away means he gets on with things.OK at present we are unsure of what is going on,but a few deals,a bit of news,and the share price could be a lot of fun.I can not see Ker sitting still.I bet he is flat out doing deals and making money..BSH will be slow and sure,but the real fun and share price growth could be with PGC.By holding both you have a foot in each camp.The reason I have posted on PGC so much is that I am sure we have all forgotten that Marac did not make all of PGC's money,and not all of PGC's assets were just in MARAC or PGW.The bank talk means we have taken our eye of PGC.The bank is up and running ,and so is Ker.

[winner69]

I am sure we have all forgotten that Marac did not make all of PGC's money,and not all of PGC's assets were just in MARAC or PGW.

Looking at the 06/07/08 reports (like before the **** hit the fan and the zillions of shareholder money went down the gurgler) nearly ALL of PGC net profit came from Marac and PGW - Perpetual and other businesses profit over those years was a loss of $2.5m, a profit of $1.5m and a profit of $1.1m respectively

Hardly inspiring stuff ..... hopefully things have changed

[ETC]

Percy i hope that PGC does become George Kerr incorporated and isn't shuffled off to the side to be forgotten about. Don't count on the property loans as an extra source of income though. PGC are just managing the property and any cash realised from their sale will go back to MARAC and BSH.

I'm not sure what George Kerr can do with the Perpetual and the residual assets from PGW but here's hoping he has some financial trick up his sleeve.

[winner69]

http://www.perpetual.co.nz/uploadGal...iew_%C6%92.pdf

This is an interesting read

Was it George or was it Torchlight that is owned by PGC that pumped in the $12m bridging finance .... seems a bit unclear to me