AFG - Allco Finance Group

[michael_selway]

This company will be wound up, might as well go short on it till it goes to 40c like Centro, still 50% more to go!

Hm no dividend declared for the full year really sucks

thx

MS

Date: 21/2/2008
Author: Danny John; Michael Evans; Stuart Washington
Source: The Sydney Morning Herald --- Page: 25
The directors of struggling Australian-listed structured finance cpany AllcoFinance Group (AFG) are still holding back the 2007-08 interim profit result.This is now a delay of close to one week on 21 February 2008, although AFG notesthat it is not technically required to release the data until the end of themonth. The banks who are major creditors to the group have appointed corporateturnaround specialist firm Ferrier Hodgson to investigate its accounts. Theboard meanwhile is trying to source an interested party for an asset divestmentor cash injection. It must also organise refinancing of debt and renegotiate aplanned power infrastructure deal in the US

 

[Julia]

Dumped all mine today

Got out of MFS and Centro before the carnage, 3rd time not so lucky

What a disappointment this stock has been, all I can think of to say is from Blackadder, when Edmund is thinking of a suitable phrase for being given orders for going over the top "It rhymes with Clucking Bell Balldrick"?

Commiserations, Pager. I once had a lot of faith in this company, bought when it was still Record Investments, and sold last year.

None of us likes copping a loss ( I took a 40% drop with a lot of other holders in less than an hour on Bradken, expected it to recover, it didn't, so I turned that 40% loss into a 50% loss before selling).

You're out now. Forget about it. Focus on your successes.

Good luck.

 

[3 veiws of a secret]

After missing the reports and conclusions of yesterday this share is worthless in my books ....I culled my losses today ...happier stocks elsewhere!......Can't keep having blood over my portfolios!:walker:

 

[GOSAFAS]

AFG's price has risen by almost 25% today - quote from the age online - "After an initial dip of 8% in early trade, Allco shares are up as much as 33% or 31 cents to $1.125 on market speculation of a buyout at $2 a share. The shares, which resumed trading on Monday after it published delayed results, are down from $13 a year ago." - If this is so then Allco will be in serious breach of ASX regulations or somebodys been doing some insider trading.

 

[ghostworld]

Bought AFG for $1.16 today. Obviously taking a punt that this privatisation rumour will eventuate.

Assuming that AFG can trade their way past the debt issues, privatisation is probably the best option for management going forward especially with the current SP (at 1.03 their market cap is only $346 mil) and compound this with the negative media and shareholders view of the company.

Not sure how long it would take to do due dilligence on AFG's complex structure. So i suspect this will be limited to companies who understand the complex structure such as private quity firms and Macquaire Bank. If AFG manages to team up with a cashed up investor, they can take advantage of the low SP and eventually re-list as a pure leasing company.

This all assumes that AFG can trade past the debt issues of course. If they can't, then i'll die a little bit inside for taking this punt.

 

[Julia]

Bought AFG for $1.16 today. Obviously taking a punt that this privatisation rumour will eventuate.

Assuming that AFG can trade their way past the debt issues, privatisation is probably the best option for management going forward especially with the current SP (at 1.03 their market cap is only $346 mil) and compound this with the negative media and shareholders view of the company.

Not sure how long it would take to do due dilligence on AFG's complex structure. So i suspect this will be limited to companies who understand the complex structure such as private quity firms and Macquaire Bank. If AFG manages to team up with a cashed up investor, they can take advantage of the low SP and eventually re-list as a pure leasing company.

This all assumes that AFG can trade past the debt issues of course. If they can't, then i'll die a little bit inside for taking this punt.

Ghostworld: please don't regard this question as a criticism of your buying AFG, but I'm really interested to know why - if you have money to buy any company you choose - you pick one whose future is so uncertain?
There are lots of really solid companies at bargain prices right now which don't represent "a punt" but rather a great investment. Perhaps you just have a great appetite for risk???
Just curious.

Unrelated, well almost, to the above question, it looks as though KPMG may have some questions to answer on this one also.

http://business.smh.com.au/allco-admits-to-19b-error/20080227-1vbg.html?sssdmh=dm16.304664

 

[ghostworld]

Julia,

It's a very risky investment. I agree that there are better investment opportunities out there that will eventually reflect their true SP once the bear market is over. Ideally I would invest in a better company for long term purposes. AFG purchase is purely speculative (looking for fast gains) which is possible if there is a buyout offer. The chance of this is quite slim as it's limited to only a few companies who would offer such a buy out.

FYI. I sold my AFG shares today and bought some CNP. That probably illustrates my appetite for risk. I'm guessing that CNP has aired out all it's bad news to that market and hopefully the SP will trend upwards. Still a risky investment as a nervous banker can always pull the trigger.

I do intend to invest in shares with stronger fundamentals. I just think that the market is still on the way down.

A while back i purchased Map around the time they listed. Well run airport which are monopolies in most cases couldn't overcome the negative market reaction towards Macquarie Bank's high purchase price for sydney airport and the Macquarie management model. Which is again being targeted negatively in this current bear market. I guess my point is even though i believe Map was going to perform earnings wise. I should have waited for a better time to purchase the shares. It fell by more than 50%. Eventually this became one of my best investments when the SP rose a few years later.

 

[Julia]

Julia,


I do intend to invest in shares with stronger fundamentals. I just think that the market is still on the way down.

Agree entirely. I'm sitting on about 80% cash at present.

A while back i purchased Map around the time they listed. Well run airport which are monopolies in most cases couldn't overcome the negative market reaction towards Macquarie Bank's high purchase price for sydney airport and the Macquarie management model. Which is again being targeted negatively in this current bear market. I guess my point is even though i believe Map was going to perform earnings wise. I should have waited for a better time to purchase the shares. It fell by more than 50%. Eventually this became one of my best investments when the SP rose a few years later.

And in the meantime you were enjoying a healthy dividend on MAP if I recall correctly. Makes good sense.

Hope you have a similar good outcome with Centro.
Thanks for the explanation - and for humouring my curiosity.

Regards
Julia

 

[ghostworld]

Just as well i got out of AFG a few days ago. Not that Centro was much of a consolation.

I wonder why they have decided to resign from their directorship. Surely, it's not because they decided that it would be good corporate governance to step aside. All their previous actions runs counter to this idea. I also doubt that it's because of shareholder pressure.

Is it possible that this is one of their early steps to attempt a management buyout. It would have been odd if David Coe remained as chairman to supposedly represent the shareholder's interest as opposed to management's.

http://www.theaustralian.news.com.au/story/0,25197,23309347-643,00.html

------------------------------------------------


THREE directors of embattled Allco Finance Group resigned today, including chairman David Coe.

Allco Finance (ASX: AFG: quote) said Mr Coe, Gordon Fell and David Turnbull will remain involved with the management of the business, but it will look for a new independent chairman.

On Friday, Allco Finance and three of its listed property trusts unveiled plans to offload up to $3.37 billion of assets to pay down debt.

Allco Finance's shares have been savaged over the past month on mounting concern about debt levels. The share price rout has triggered margin calls on stock held by its directors, exacerbating the falls.

The resignations mean that the board now has a majority of independent non-executive directors.

"I will remain an executive of Allco, and assist the company in the implementation of its restructuring program," Mr Coe said in a statement.

Deputy chairman Bob Mansfield will chair the board until a new chairman is appointed.

Shares of Allco were down 23 per cent at 67cents by late morning today. The benchmark S&P/ASX 200 Index was down 3.2 per cent.

 

[EZZA]

thought i'd go for a punt yesterday, bought in 40.5c. sold out at 70c today.

back in at 51.5c. interesting to see a big buyer today. hmm. someone has faith in this company.

 

[BSD]

thought i'd go for a punt yesterday, bought in 40.5c. sold out at 70c today.

back in at 51.5c. interesting to see a big buyer today. hmm. someone has faith in this company.

Someone?

Kinghorn is a founder of the business - recently minted by selling RHG to punters at $2+

He threw $12m into AFG after picking up 6% or so at $2.85

Maybe he is smarter than the average bear?

Maybe he is like Tony Smith averaging down into MFS and blowing his dough?

http://www.goldcoast.com.au/article/2008/01/18/6896_gold-coast-business.html

Buggered if I know...

 

[krisbarry]

Well the share price took off after the "substantial holder" noticed was recieved today. Maybe there is life in this company after all.

 

[56gsa]

Kinghorn also buying in big to RRT which is linked with AFG... he now has almost 20% in RRT - at what point does he have to announce a takeover? 20%?

 

[krisbarry]

Takeover Rumour

Takeover rumours swirling around Allco gained credibility today, after RAMS founder John Kinghorn lifted his stake in the troubled group to 10 per cent.

Take a look at this video

http://www.abc.net.au/reslib/200803/r229876_916932.asx

 

[upgrade]

Trading Halt requested!

8 new announcements on the ASX, 3 price sensitive. Not looking good at this present time.

Does anyone have any insight into where we may go from here?

Thankyou in advance

 

[reece55]

Trading Halt requested!

8 new announcements on the ASX, 3 price sensitive. Not looking good at this present time.

Does anyone have any insight into where we may go from here?

Thankyou in advance

I suggest you take a good look here......

Looks like the banks have said enough is enough for the groups largest shareholder, which realistically is just a vehicle for executives to invest in the Company........ The worst part was that Allco was actually investing in itself, because some of Allco's investments in associates actually had investments in preference shares in API. It has all come undone for this group...... what a fall from grace......

Cheers

 

[Kauri]

NAB has pulled out of a $A110 mln Allco deal
and Australian banks are facing risk of $A600 mln in losses from Hedley Leisure & Gaming Property Fund.
A San Francisco-based US backer is also pulling out of deal to privatize Lachlan Murdochs"s Consolidated Median Holdings in a deal worth over $A3 bln as the credit crunch continues.

 

[cinishappy]

Does any one know what is there mission and vision statement? I cant find them in their website. I am doing a presentation of my school assignment regarding Allco Finance Group whether to invest or not to invest.

 

[ghostworld]

Does any one know what is there mission and vision statement? I cant find them in their website. I am doing a presentation of my school assignment regarding Allco Finance Group whether to invest or not to invest.

Try their annual report. That's where they usually have them. If they have a mission statement, it probably doesn't sound anything to what they actually do.

"Increase revenue by financial engineering through cross ownership of related entities. The company will attain it's target size by attaining debt funding from greedy banks. This debt will then be used to purchase more shares in our company through our related vehicles thereby inflating the company's value" (sarcasm. Don't use this for your school assignment)


I can't see why you would want to purchase AFG now unless you're taking a small punt or your a takeover or arbitrage player.

 

[vishalt]

Does any one know what is there mission and vision statement? I cant find them in their website. I am doing a presentation of my school assignment regarding Allco Finance Group whether to invest or not to invest.

I can give you one right now:

"To keep afloat."

Otherwise go to http://www.allco.com.au and to the about section has a few statements/history.