Australian (ASX) Stock Market Forum

AFG - Allco Finance Group

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Thank you so much for your help. My assignment is about recommending whether to invest or not to invest in a particular company. Since Allco is in a big mess now(from 2006/07 - $13plus drop til now 0.53) and there are many news about them, I doubt any one would want to invest in them.
 
AFG have risen a lot %-wise in the last 2 days, although nowhere near their previous heights.

An announcement today from IMF (Australia) Ltd today indicates that they will fund litigation by AFG shareholders against AFG for AFG's alleged breaches of their disclosure obligations between 21 August 2007 and 25 February 2008.

As one of the hapless bunnies who purchased AFG in this period, I wonder if this will bring any joy to AFG holders and when?

Does anyone know of the activities and track record of IMF?
 
They are talking same deal for centro and mfs holders. They have done this before but dont know if they can be successful.
 
YELNATS said:
AFG have risen a lot %-wise in the last 2 days, although nowhere near their previous heights.

An announcement today from IMF (Australia) Ltd today indicates that they will fund litigation by AFG shareholders against AFG for AFG's alleged breaches of their disclosure obligations between 21 August 2007 and 25 February 2008.

As one of the hapless bunnies who purchased AFG in this period, I wonder if this will bring any joy to AFG holders and when?

Does anyone know of the activities and track record of IMF?
Click to expand...

IMO, its a waste of time, only winner will be the law firms that will charge like wounded bulls no doubt, until government authorities take action to make senior managers and directors more accountable then things wont change.

Note, most AFG senior managers and directors took margin calls around the $3 level, they suffered losses but nothing compared to most shareholders.
 
Well have been checking out AFG lately and think the worst may be over.
John Kinghorn becoming a substantial holder is a great sign.
AFG can meet its repayments but may have too sell assets to reduce debt just too keep the banks happy.
Seems like the banks are not moving too liquidate but to restructre and focus on core assets.
Banks anyhow are in to deep for there own good so its in their interests to keep AFG ticking over and repaying debt.
Credit crunch maybe easing slightly as confidence resumes somewhat.
If MFS can survive Id hope AFG could.
Well have I missed anything or is anyone not convinced and I wouldnt blame anyone for that !
 
I hope you're right Lucky_Country but there are just too many unknowns for me to have an opinion. The notes AFGHA are trading around $15 with a face value of $100, given they have priority over equity this price suggests the company has no chance. But conflicting with that, one of the directors has outlayed substantial $$$ on the notes as the price has fallen, and if anyone knows the possible outcomes, it would be an insider. I hold the notes as I see this as the best way to play AFG at the moment (unless you're a day trader) but would see survival as a bonus, not highly likely.
 
Do you still hold Broadside ?
Personally I think they may get a lifeline if MFS can survive I think AFG will.
Kinghorne may take a leading role in the revival and he has kept buying would nt be suprised too se him up his stake again.
Coe and freinds havent been asked too leave the company just to focus on their key areas while new directors are brought in.
Could be some ugly figures come out but the worst of the credit crunch is over all just overall perspective of the situation.
 
Definately a risk reward scenario.
I think one of the problems is the Allco brand has been damaged.
Name change and managerial change needed for sure I thinkyou will be doing ok with your notes in a couple of months.
 
Lucky_Country said:
Definately a risk reward scenario.
I think one of the problems is the Allco brand has been damaged.
Name change and managerial change needed for sure I thinkyou will be doing ok with your notes in a couple of months.
Click to expand...

Agreed, even if they survive the current crisis they won't be able to prosper in the future with the Allco brand. Hopefully something like a merger or buyout, with a name, managerial and culture change can be engineered.
 
Lets hope Mr Kinghorne brings his own touch too the company.
Im pretty confident they will survive if they are good boys too the banks.
Still each must weigh up there own investment choices and not take my word for it.
 
AFG share price up 10 cents already today, i'd assume it is a result that the DJ Newswires announced that AFG has now until 30 June to refinance it's debt. This could be very good news for the recovery of this company.


Any other thoughts and why AFG themselves haven't made a formal ann of this?
 
Hey further good news for the troubled allco finance company, they have a potential plan in place to restructure the companies financial problems, here is the report from the AFR posted this morning.

DJ Allco Pitches Rescue Plan To Lenders - Report
10/04/2008 08:06AM AEST

MELBOURNE (Dow Jones)--Embattled leasing and funds management firm Allco Finance Group Ltd. (AFG.AU) has proposed a restructuring plan in a fresh bid to pay down a large part of its A$1.1 billion in outstanding debt, The Australian Financial Review reported Thursday.

Without citing its sources, the newspaper said the proposal is believed to have received in-principle approval from Ferrier Hodgson, the corporate recovery specialist advising Allco's lenders.

"We are putting forward an offer, which says we are not asking for discounts or interest holidays," Allco executive director David Veal told the newspaper.

Newspaper Web site: http://www.afr.com

-By Melbourne bureau; 61-2-8235-2950; djnews.sydney@dowjones.com


(END) Dow Jones Newswires

April 09, 2008 18:06 ET (22:06 GMT)

Copyright (c) 2008 Dow Jones & Company, Inc.
Click to expand...
 
hsv2001 said:
anyone have any idea a reason for this outbreak, up 33 percent today and no ann or recent ann???

Marc
Click to expand...

Price now up to 85c or 48% today. I've no idea for the sudden improvement, except maybe the market's favourable response to AFG's sober approach to its' predicament, as per their April 17 letter to shareholders,

Quote
.... we have commenced the implementation of an aggressive business restructuring program to deliver a viable business for the future. This restructuring program focuses on the core strengths of our business: Aviation, Shipping, Rail and Real Estate. The program also involves an exit from Financial Assets and Infrastructure, including Allco disposing of certain non-core assets to reduce debt. We are currently in active discussions with a number of parties and expect to be in a position to make further announcements in due course. Asset sales, together with a repositioned
business, will enable Allco to significantly reduce debt by June 2009.
Unquote.

Let's hope the recovery is sustained.
 
hsv2001 said:
anyone have any idea a reason for this outbreak, up 33 percent today and no ann or recent ann???

Marc
Click to expand...

Actually it has been increasing in price and volume since last friday--pays to keep an eye on the charts..doesn't really matter why.
 
insane price jumps. who here thinks it will keep going up? seems to have taken a dip today. its interesting that the large increase in shareprice has gone relatively unnoticed (from what i can see announcements wise and news wise)
 
share price is still fluctuating quite largely today. announcement was made in regards to a share price increase query. afg says they have no reason for the share price increase.


..........just like cnp
 
Up substantially again today on increased volume (on a per hour basis), even compared to yesterday's volume. Maybe the market's assessment is that this stock has been oversold.
 
Hi im new to this forum. Thought I would tell you what i found. If you go to google and type news on allco finance and then go to the plugger link. If you look down you will see that james Lang the estate agent in Sydney has sold the sydney complex and another for 540 million dollars. Guess their is no announcement as not yet properlly signed.. Tenders closed on these properties two week ago so i believe this is why the price is trending up for the past two weeks. 540 mill will help them well.

Also if you type wind farm sale in google ffor allco you will see that they have 50 offers for the wing farm the one in california for 1 bill.


This sort of news once confirmed and announced should see some confidence bank in the shares.
 

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