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That Brett King sure knows how to keep the excitement up …hasn’t lost his touch
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Interesting;Strong equity ratio.No bad debts and lending secured on first mortgages on property bridging loans.
A nice niche earner on very modest ratios.
.
http://nzx-prod-s7fsd7f98s.s3-websit...176/375633.pdf
Last edited by percy; 01-08-2022 at 09:34 AM.
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 Originally Posted by percy
This one has come onto my radar recently and I have purchased a few $k's just to get a finger in the pie so to speak. PE of 9 with growing loan book does not look bad to me. I guess it is the Brent King effect that has the share price at such low levels. I will be speaking to Brent King in the next few weeks and if he answers how I hope he does, I may flick a bit more money their way.
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Originally Posted by blackcap
This one has come onto my radar recently and I have purchased a few $k's just to get a finger in the pie so to speak. PE of 9 with growing loan book does not look bad to me. I guess it is the Brent King effect that has the share price at such low levels. I will be speaking to Brent King in the next few weeks and if he answers how I hope he does, I may flick a bit more money their way.
I looked closely at the board before buying.Very impressive resumes.
Bridging first mortgage lending appears to be an interesting niche market, with high NIMs ,and loan periods of approx 2 years.
I spoke to Brent King and found him easy to talk to,and he gave simple clear answers to my questions.
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Originally Posted by percy
I looked closely at the board before buying.Very impressive resumes.
Bridging first mortgage lending appears to be an interesting niche market, with high NIMs ,and loan periods of approx 2 years.
I spoke to Brent King and found him easy to talk to,and he gave simple clear answers to my questions.
He is easy to talk to and by all accounts does regret his getting into bed with Rod Petrecevich. But he does have that reputation that well Viking capital, Dorchester Pacific etc. Like you say Percy, it is an interesting niche market with high NIMs and the loan book does not look too dangerous. Rising interest rates will only help (traditionally they have benefitted finance companies) so I think at the 5.5c mark it is a good buying opportunity. I see the CFO has also purchased a small stake but better than nothing. New CEO as well, the jury is still out on him. The change of auditor can be questionable as Baker Tilly resigned. But that might just be them looking for better quality clients and dumping their lower value ones. When I mentioned PE of 9 that was at Annual Report stage. I see there has been a positive market update since then...
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What happened to the Chow investment share, was going to be a BILLION dollar investment company, DYOR !!!
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Who is the typical two year bridging loan customer?
Is it mum n dad or property developers?
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That is a good questions. I will ask Brent when I speak to him. Last I spoke to the company about a year ago they assured me it was lending on small items like vehicles etc. But yes I do remember Dorchester and their property lending that went very tits up.
Apologies, why did I think it was cars. Moms and pops houses. I knew it was moms and pops something. Percy is correct.
Last edited by blackcap; 14-09-2022 at 09:13 AM.
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Originally Posted by Rawz
Who is the typical two year bridging loan customer?
Is it mum n dad or property developers?
He told me it was often someone buying the house next door,or a parent buying a property for a family member.so loan only needed as bridging.
More info on loans page 47 of the annual report.
As at 31 March 2022 the Group’s loan advances are secured as follows: first mortgages 100% (March 2021: 99.8%), second mortgages 0.0%
(March 2021: 0.2%), combined first and second mortgages 0.0% (March 2021: 0.0%). There were no unsecured loans as at 31 March 2022
(March 2021: none).
Loan receivables credit exposures are concentrated in the residential property sector, particularly in the North Island and the Auckland Market.
As at 31 March 2022, advances by the Group in the North Island residential property sector represented 95.2% (March 2021: 93.5%) of its total
exposure, with 73.5% (March 2021 72.1%) being in the Auckland market. The geographical profile of loan receivables is analysed further as
follows:
As at 31 March 2022 the Group’s advances were primarily secured over properties which are categorised as follows: residential housing 85.4%
(March 2021: 85.8%), residential bare land 10.7% (March 2021: 8.5%), residential development property 0.0% (March 2021: 0.0%) and
commercial property 3.8% (March 2021: 5.7%). In some cases, secondary securities may be taken over other property types.
Last edited by percy; 14-09-2022 at 07:43 AM.
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Would not touch anything Brent King is involved in.
Investors should bear great heed to past track record and the old adage:
‘Once bitten, twice shy etc.’
‘Once conned shame on you. Twice conned, shame on me.’
Last edited by Balance; 14-09-2022 at 08:24 AM.
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