Storm Financial Group

[cutz]

hello,

and those who are close to zero with BNB, MFS, Allco, numerous listed trusts, and the other 1000's of three letter codes past or present from the ASX

its all a circus

thankyou
robots

That’s the beauty of a properly diversified, minimally geared stock portfolio, a couple of stocks can take a hit and it doesn’t really matter in the big scheme of things, you just write those off at the end of the year and move on, can’t really do that with a property portfolio geared to max.

 

[Sean K]

I am also a storm financial client & agree with above comments.
You all must be idiots to believe in your advisers, media etc etc.
If i had a shop that sold milk, why would i send my customers down the road to buy milk off someone else. So the only person to promote storm would be clients & themselves dont you think.
Storm Clients Pay for their own holidays which is another quoted error.
You people are so ill informed that i will not be taking any of your stock pick advice seriously as i now know you believe in unfounded gossip, & chineese whispers that grow & GROW until this sort of **** is written.
Oh yes & only Townsville clients are going through the **** not everyone else. Oh that was another untrue statement by this forum that its soon to be more (redcliff) it was only people with Colonial loan(Commonwealth) which are in Townsville.
But you all kow so much. Infact every statement on here is wrong a lie or miss informed.
I just cant believe how you get on these forums & know so little but sprout you know all the facts.
Be carefull people on this forum getting advice from these blokes that know everything about nothing.

I am a very happy Storm client & would like to say thank you to Storm for being up front and honest with everyone (clients only) We are all having a hard time with the sub prime & i also hope that this year bring all of us at Storm a great year.

A very happy Storm client.

Nice.

 

[Solly]

Re: Ignorance and seeking knowledge

Storm has 13500 clients with only 200 affected.
Not a bad % in this sub prime mess dont you think? Which is quoted from the Asic website and they still have found no problems with storms model.
You guys realy have no idea do you?
Its called fear of the unknown & you dont know nothing about Storm do you?

You are correct I don't know anything first hand about Storm but I'm eager to know more.

I only know what I have read in the media & forums, watched on the 7:30 Report and by reading the decision of Justice Greenwood regading the dismissal of the interlocutory application.

I am curious to know why are there , as you state, "200 clients affected" ? To me it would be a red flag if one client was affected if it was the result of following the advice of a financial services company.

As for ASIC not finding any problems with Storm, I can only find a statement from ASIC from 24 Dec 08 which indicates investigations are continuing and a further statement will be made in the New Year.

You mention 'Storm's Model', as I am eager to ensure that I'm not mislead or follow false understandings, can you advise and elaborate what this model actually is?

 

[Macquack]

They should have been tailoring to their clients age, financial situation and appetite for risk.

Yeah, but there is no money (fees) in it for Storm.

Keep pumping up those portfolio's boys.

Anybody knows that a tyre with a recommended maximum pressure of 10 psi can take at least 90 psi before it blows.

 

[Solly]

A very happy Storm client.

Nice.

Maybe more happy Storm clients could post here to add balance...:70:

 

[mrfmad]

The Storm model was hardly unique - it was pretty much the gospel over the past 10 years to use home equity loans to make further investments - be it investment properties or equities. Then for those investing in equities, margin loans were pushed heavily as well.

There are now plenty of people in the same situation as Storm clients - many will have gotten themselves there without any help from financial advisers, others will have gotten there with help from financial advisers.

I feel sorry for the Storm clients but I feel sorry for anyone that has naively over geared against the 'family home' and now faces losing said home - regardless of age - though it is clearly a much tougher situation for those near/at retirement age - its a terrible thing to face.

My main point is Storm clients are hardly alone here - this pattern is playing out across Australia and the world at the moment regardless of whether people were Storm clients or not. This aggressive, debt driven chasing of wealth is exactly what has led to the crisis the world is now facing.

Anyone borrowing against their family home to invest was knowingly taking on risk. Because it was so prolific it is easy to see that people became apathetic about the risks but thats a big step from being unaware there were risks. I find it hard to believe anyone borrowing against their home to make investments wasn't aware there was risk involved in that sort of strategy.

I'm surprised that Storm didn't protect themselves and their clients with derivatives. The relatively small cost of out of the money put options over the indexes would probably have saved them a lot of bother.

If Storm heavily pushed the aggressive, leveraged strategy to people who were at or near retirement age, without warning them clearly of the risks of such a model, that was irresponsible. They should have been tailoring to their clients age, financial situation and appetite for risk. But it doesn't sound like all Storm clients were using this aggressive model though - so I don't know where or what the truth of the matter is.

Now This guy is talking common sense. I couldn't agree with the above more.
Dont forget that Storm may not have factored in the stock market crash of this extreme but did you?
So for 30 years they have served their clients well.
I am possitive this market crash will certainly be factored into new clients plans & Yes as far as i know it's business as usual at Storm.

 

[mrfmad]

hello,

spot on mrfmad,

people read a few blogs and they are a professor on Storm, property, sub-prime, investment banking etc etc yet still pulling money box incomes

thankyou
robots

Thanks robots

 

[Judd]

I don't know much about anything much but even at my most erratic the one thing I did avoid was putting the roof over my family's head at risk. You can argue all you like about optimising your balance sheet but, in my view, to put your residence on the line is sheer stupidity.

When we owned rental property, the banks held each property or other rental property (100% owned) as security. Just needed to put that fence between an investment going wrong (none did) and our home. None of this line of credit or equity loans rubbish. Just a rort by financial institutions to con the foolish in to spending more than they can afford.

Same with the margin loan - and we have so much in the way of capital losses I doubt whether we can use them all in our lifetime - the only saving grace was that there was sufficient security outside of the margin loan to pay it out once I decided to ensure everything went pear shaped.

Argue on.

 

[mrfmad]

I dont think anyone is trying to argue.
Just putting a different light on it other than only downramping it with
DOOM & GLOOM

 

[Julia]

Same with the margin loan - and we have so much in the way of capital losses I doubt whether we can use them all in our lifetime - the only saving grace was that there was sufficient security outside of the margin loan to pay it out once I decided to ensure everything went pear shaped.

Argue on.

Judd, sorry if I'm being dense, but I'm a bit confused about your last bit:
"once I decided to ensure everything went pear shaped".

 

[Julia]

Dont forget that Storm may not have factored in the stock market crash of this extreme but did you?

The market didn't suddenly drop 45% overnight. There were plenty of warnings about what was happening, not the least of which was simply the falling market. Surely professional financial advisers should have, in these circumstances, advised their clients in such a way as to protect their capital, and in particular for those who were leveraged.

I am possitive this market crash will certainly be factored into new clients plans

That's nice. Not too warm a comfort for those who have been wiped out.

May I ask you a general question? Not specifically relating to Storm but just the general principle. Would you like to see some legislation introduced which would mandate a level of accountability on the part of financial advisers for the advice they give?

Or do you think clients should share in the responsibility of what happens to their investments, and be sufficiently financially literate to ensure they have the capacity to do this?

 

[Judd]

Judd, sorry if I'm being dense, but I'm a bit confused about your last bit:
"once I decided to ensure everything went pear shaped".

um, a certain medical condition tended to exacerbate my moments of irrational exuberance which lead to very foolish - and expensive - trading.


All under control now; I've found an illegal source of suitable drugs (just kidding there.)

 

[Julia]

um, a certain medical condition tended to exacerbate my moments of irrational exuberance which lead to very foolish - and expensive - trading.


All under control now; I've found an illegal source of suitable drugs (just kidding there.)

OK, sorry for asking, didn't mean to pry. Glad all is OK now.

 

[Smiley]

I was a Storm client and know 100s of clients all over the country.
Do not believe all you read in the papers but you will see them folding this week and that will be true!
I am not happy that all the clients I know had/have huge margin loans in addition to a loan 80% usually on the house value. It is not just a few hundred but thousands.
There are two class actions against them already started.
Townsville Bulletin is advertisting lots of Storm client houses on or near Castle Hill for sale and a real estate agent told me 1000s of houses of Storm clients will be in the market now or soon.
Their model was doomed- see this interesting article:
http://www.acleardirection.com.au/storm_s_doomed_model___eureka_report_article
They have been in business only 14 years and not more - they had to admit it in the court documents with Cwth.
People went to them for financial advice and were sold a pack of lies.
All were told not to get out of the market as their money was safe. Those who tried to get out and did had a mighty battle to do so. I know from experience.

 

[Glen48]

No money is safe unless you have it in your wallet or under the bed and check it every few hours.

 

[Smiley]

do not invest what you are not willing to lose

those of us who have been stormified have learnt this lesson the hard way

 

[Solly]

Under a company search on the ASIC site it says that Storm Financial Ltd is - Under External Administration and/or Controller appointed.

Does anybody have any further info or updates ?

 

[Jifromoz]

in the Townsville Bulletin today

Storm in hands of administrators


January 12th, 2009

STORM Financial has been forced into voluntary administration.

The embattled financial planning firm has been placed in the hands of Brisbane-based Worrells Solvency and Financial Accountants.

In a statement, Storm Financial joint Managing Director Emmanuel Cassimatis said Storm had no choice but to enter voluntary administration following an `aggressive’ demand from the Commonwealth Bank over margin loans.

``This is obviously a deeply distressing event and both Julie and myself are devastated,’’ he said.

``We will now be working with the administrators to formulate a proposal to assist clients in the future.’’

 

[Aussiejeff]

A very happy Storm client.

Nice.

So, as of today, Storm Financial is in administration & the hands of the receivers.
The lies, damned lies will now be outed.

Maybe very happy Storm clients will now become not so happy... not so nice.

Shame, Storm... SHAME. :angry:

 

[CoffeeKing]

in the Townsville Bulletin today

Storm in hands of administrators

1. ``This is obviously a deeply distressing event and both Julie and myself are devastated,’’ he said.

2. ``We will now be working with the administrators to formulate a proposal to assist clients in the future.’’

1. "Didn't see it coming" eh

2. What future clients???