AFG - Allco Finance Group

[waz]

Could AFG be another Centro???

I think thats the only fear with AFG. Although I doubt it could be another Centro. Yes it paying too much for Rubicon, but is it a done deal as yet???

I think they already tried to reduce the price paid. Can they do it again.

AFG has been very quiet with its announcements lately, that could either be a good or bad thing.

Also if anything bad does happen to AFG, how will it affect its competitors BNB and MQG. Long term it would be good.

 

[DowJones]

There was negative press on Allco Finance Group from the Australian Financial Review. Their debt is the worry and they need to convince investors of their complex deal making.

 

[agro]

yes they claim they don't have any subprime exposure but imo i don't trust them..

may be worth day trading because if it goes down 27% without an ann it just goes to show another top cat selling down his stake

 

[tronic72]

"yes they claim they don't have any subprime exposure but imo i don't trust them.."

I tend to agree at the moment. My thinking is if they had nothing to hide they'd open their selves up for full exposure to the Market. I've held them on an off for the past 12 months but recently they seem to have slipped of the face of the earth, (PR wise). For a company thats taking so much of a hiding, management is doing a crappy job of elaying the fears the market has.

The icing on the cake for me was that they didn't say who the major backer was for their recent fund. I suspect it was one of their own divisions.

 

[tronic72]

"I think thats the only fear with AFG. Although I doubt it could be another Centro. Yes it paying too much for Rubicon, but is it a done deal as yet???

I think they already tried to reduce the price paid. Can they do it again."
Waz,

The Rubicon deal is completed. Was finished nearly a month ago.

I'm right with you regarding MQG & BNB. Have been buying up both for long term although my BNB are getting a hiding today. I assume it's because of the fear the AFG/CENTRO drop is putting on similar stocks.

 

[Broadside]

bought today at close...people are jumping at shadows. A massive drop today on the back of the AFR opinion piece? this market is becoming a joke!



Oversold imo.

 

[YELNATS]

bought today at close...people are jumping at shadows. A massive drop today on the back of the AFR opinion piece? this market is becoming a joke!



Oversold imo.

I tend to agree. If you read their recent announcements, they very clearly state they have zero or next to zero exposure to the US subprime crisis and outline their immediate future funding commitments.

Should these announcements be found to be false or misleading, AFG's directors and management would be jeopardising their credibility and careers, something I don't believe they would willingly do.

As I holder, sure I'm disappointed by the retreat in price, but I'm not selling out just to crystallise a loss.

 

[Aussie2Aussie]

AFG's directors and management would be jeopardising their credibility and careers, something I don't believe they would willingly do.

Sorry could'nt help myself.

Heaven forbid that a bunch of directors/managers were not keeping their eyes on a business that they were charged with looking after.

 

[Broadside]

Sorry could'nt help myself.

Heaven forbid that a bunch of directors/managers were not keeping their eyes on a business that they were charged with looking after.

Directors and mgt own a large chunk of this stock...they will be guarding their wealth very closely...interests are aligned with ours.

 

[Go Fast]

What about how the speeding ticket was issued at 11am this morning and they took until 3.50pm to respond to it? surely a 25% drop in their share price should be of concern to directors - enough to inform the market at least.

 

[runningrugby]

bought today at close...people are jumping at shadows. A massive drop today on the back of the AFR opinion piece? this market is becoming a joke!



Oversold imo.

Just another example of wealth transferring from the impatient to the patient.
That's all the stock market is these days. The amount of borrowed money in the market has increased substantially in Australia since the property boom (ie people have been able to borrow against the value of their residential property). The borrowed money can disappear pretty quickly when the bank rings up. Its a worry but its part of modern day investing. Welcome to the wonderful world of margin loans. I now hold AFG but do so with my own funds!! I know a guy who owns more shares than me but can afford to renew his membership at the Gym for $299.00 for 6 months. Easy credit is not only a problem in the US, its a problem in Australia as we speak.....

 

[Garpal Gumnut]

Directors and mgt own a large chunk of this stock...they will be guarding their wealth very closely...interests are aligned with ours.

What is your evidence that directors and management owning large chunks of stock have their interests aligned with shareholders. Its an interesting concept but I'd appreciate you expanding on it, especially when a stock may be about to go down the gurgler, or conversely leap in price, on information undisclosed to the wider market.

gg

 

[Broadside]

What is your evidence that directors and management owning large chunks of stock have their interests aligned with shareholders. Its an interesting concept but I'd appreciate you expanding on it, especially when a stock may be about to go down the gurgler, or conversely leap in price, on information undisclosed to the wider market.

gg

their interests are aligned as fellow equity holders, not just employees...all directors and management talk of building shareholder wealth but many only have nominal holdings and basically just draw a salary...I am happy to see directors and management with large stakes putting their money where their mouth is....because there is less "slippage" between what they want and what I want.

Fair enough?

PS what happened today was a knee jerk reaction to the AFR article, wiped $750m off the market cap...even the article itself doesn't refer to "going down the gurgler". Investors are spooked but that creates opportunities for those who keep a clear head.

 

[Aussie2Aussie]

their interests are aligned as fellow equity holders, not just employees...all directors and management talk of building shareholder wealth but many only have nominal holdings and basically just draw a salary...I am happy to see directors and management with large stakes putting their money where their mouth is....because there is less "slippage" between what they want and what I want.

Stop it, your killing me!!

Where on earth are you getting this from? I am not saying Allco is going broke, but I have never read such drivel, from someone who appears to believe it, before in my life.

 

[Broadside]

Stop it, your killing me!!

Where on earth are you getting this from? I am not saying Allco is going broke, but I have never read such drivel, from someone who appears to believe it, before in my life.

excuse me? the previous poster asked why I thought it was good they held a large equity stake....rather than taking pot shots at me for having my say why don't you tell me why it's drivel??

Or do you prefer to invest in companies where management / directors have negligible equity?

 

[3MT]

I think the current sentiment and market conditions have turned many of us good intentioners into comical cynics.

 

[Aussie2Aussie]

excuse me? the previous poster asked why I thought it was good they held a large equity stake....rather than taking pot shots at me for having my say why don't you tell me why it's drivel??

Or do you prefer to invest in companies where management / directors have negligible equity?

Please, please show me one company that does not have directors, that have a direct or indirect shareholding. Counts for nothing.

I will start a list for you of better known corporate failures that fall into that category:

FAI
HIH
AWA
OneTel
...........this is where you can start.

 

[Broadside]

Please, please show me one company that does not have directors, that have a direct or indirect shareholding. Counts for nothing.

I will start a list for you of better known corporate failures that fall into that category:

FAI
HIH
AWA
OneTel
...........this is where you can start.

All things being equal I prefer to directors to have decent equity stakes. Your criterion is your own. Just don't attack my opinion because you have done your money.

 

[Aussie2Aussie]

All things being equal I prefer to directors to have decent equity stakes. Your criterion is your own. Just don't attack my opinion because you have done your money.

I personally have been out of the market since March 2007 because of this very event that we are now experiencing; sure, I have left $ behind but it drives me insane when I see comments from people that have no idea as to how the real corporate world works, but are prepared to put their hard earned into companies.


Your the one posting on this loser, not me!

 

[Broadside]

I personally have been out of the market since March 2007 because of this very event that we are now experiencing; sure, I have left $ behind but it drives me insane when I see comments from people that have no idea as to how the real corporate world works, but are prepared to put their hard earned into companies.


Your the one posting on this loser, not me!

Yes I bought today at $3.10, congrats to you for staying on the sidelines for the past year. What is bank interest? 6%? Nice going. And you're posting on this stock too, difference is I have a reason to because I own it, what is your reason other to knock contributors?

No more from me. You can keep this going if you like.