OK, whatever, I guess you must have got burnt but FDL is a very small part of the group so lets keep things in proportion! New financial partner, more RMBS placements and Mike Pero Real Estate is where we appear to be heading!
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OK, whatever, I guess you must have got burnt but FDL is a very small part of the group so lets keep things in proportion! New financial partner, more RMBS placements and Mike Pero Real Estate is where we appear to be heading!
Somewhat puzzling to me is managements choice to have Note holders get shares... This will seriously dilute their existing investment and at this point in time the directors are also large shareholders? Theories anyone?
So the memo was sent only to market participants (brokers), and not posted as a general announcement. This explains why investors only found out about the trading halt if they attempted to by or sell the notes.
Trading halts are usually communicated to all and sundry through adding an announcement to the NZX.COM pages covering the halted securities.
It's called Hobson's Choice.....they have no cash to repay holders who would inevitably elect to cash out if given that option.......Quote:
Theories anyone?
Quite simple Blackcap, preserve cash and regretably dilute share value as a means to an end, the company survives and continues to grow through working capital, new partners and drive, they have a very dedicated team who have been together for some time now, thats their culture and thats the difference between them and comparitive companies that have bit the dust!
The major shareholders are in for the long term, so should you be if you want to preserve your investment, the market fallout of the last 2 years and greed do not equate in the current climate!
That is an absolute disgrace - management and the board can't even face up to letting bondholders and current shareholders know the facts.........WTF is wrong with NZXQuote:
So the memo was sent only to market participants (brokers), and not posted as a general announcement. This explains why investors only found out about the trading halt if they attempted to by or sell the notes.
Trading halts are usually communicated to all and sundry though adding an announcement to the NZX.COM pages covering the halted securities.
I trust NZX will be keeping a close eye on share price activity from Monday onwards until March 15th..........plenty of time for price manipulation to advantage current shareholders here........
Invessi you seem to have a very positive perspective on this for a group of business's which clearly have broken business models? I didn't get burnt but there was no way I would roll over and continue to be a debenture investor in FDL or NZF I took my cash, just wish I could do the same with these notes......
How do you link Mike Pero Real Estate to NZF, according to the companies office he is the only shareholder / director, it would appear to having nothing to do with NZF? Mike Pero Mortgages is a totally seperate venture. I think the Real Estate venture will go the same way as the flight simulator business......crash landing !!
This also explains why there is another thread around here somewhere titled "NZX is a Joke". Jeez, people make a fuss about Bernard Whimps low ball offers. How low ball can you get when you kill off trading and not let anyone other than Special People know. Clearly holders are just dross who will get tossed the periodic crumb of cake when they can't release their own bread.
Mike Pero spruiked Huljich Kiwisaver which in turn invested heavily in DIl. Don Brash has since resigned from Huljich and Mike Pero have stopped spruiking HWM. HWM were also being spuriked be Matt McCartens Unite Union which represent minimum wagers in Starbucks and call centres.
Mike Pero Mortagages is owned wholly by MPHM Limited which in turn is half owned by NZF and Secure Funding Ltd. SFL is owned by Liberty Financial Pty.
Join the dots
Plenty of time for that... but which way is it going to go? Down to 1-2 cents.... Issue of 1000 million shares and then pick them up for nothing on market at discounted prices? Or drive price up to 30 cents and preserve stake in the company?
Could be an interesting few trading months ahead... :)
TTG, yes, they have broken the business model........they survived where nearly all others of their type did not!!
An emailed notice was sent out by the NZF home loans BDM advising finance and mortgage brokers that home loan lending was to be suspended while they completed due diligence with a new financial partner, this is an operational matter and they may not have been required to advise NZX, of this I am not sure! The suspension was at the request of the new investor!
NZF/Liberty own the MPM intellectual property and Mike Pero is contracted by them to use his face for 10 years. I can't see how he can go into real estate without involving the JV?
These are the comments made last week on stuff.co.nz "Pero formed a company called Mike Pero Real Estate limited in August last year and such a business might be a good fit with the mortgage broking business Pero founded in 1991.
However the possibility of adding a real estate arm to the mortgage and insurance broking business was not something Mike Pero Mortgages chief executive Shaun Riley was keen to discuss.
''All I can say is that it's something we have discussed and nothing's been finalised,'' he said.
He would not comment on rumours the new agency could be launched as early as next week."
I am inclined to take the 6% on the notes, at least I can sell down and probably get my money back over time, a large number of potentailly diluted shares is not that appealing, even though they might come right in the long term.
Well........ not sure the Bondholders also hold enough ords to 'drive the price down', but equally unsure whether the majority shareholders are foolish enough to try to manipulate the price higher either. For sure, any unusual activity will draw attention of regulators - a few on this site will make sure of that.......Quote:
but which way is it going to go? Down to 1-2 cents.... Issue of 1000 million shares and then pick them up for nothing on market at discounted prices? Or drive price up to 30 cents and preserve stake in the company?
The truth is probably somewhere in the middle - it sits around 10 cents with no activity as usual, and we see what eventuates.
Either way, my pick is the new bonds and the share price both get trashed after March 15th
Wildcard is this 'equity partner' and timing of any announcement. If they had any brains they'd wait as well..........why hurry?
NZF - Mike Pero Mortgages - Mike Pero - Mike Pero/Mike Pero Real Estae JV - Liberty Financial - NZF Home Loans - Liberty Financial -............now join the dots!
Pero launches real estate company with commission inducement
Published 14 February 2011
It’s hardly been a secret – mortgage broker Mike Pero has launched Mike Pero Real Estate Ltd, offering customers a reduced commission rate of 2.95% to sell their homes.
Mike Pero Real Estate is a partnership between Mr Pero and the company he founded in 1991, Mike Pero Mortgages Ltd.
He said that commission rate reflected the challenging economic times: “According to a recent Colmar Brunton survey, 91% say a real estate company offering a commission rate of 2.95% would be enough to put them on their shopping list.
“For a long time, I have felt the 3.95% rate charged by most real estate companies is too much. It’s one of the most talked-about topics and what people grumble about most when selling their homes.
“Times have changed and, like many businesses, real estate has been revolutionised by technology. It’s now less about bricks & mortar and more about clicks & mortar. Marketing & communication through the internet & mobile phone technologies is massive in this industry – you don’t need to have huge overhead costs that are then passed on to customers through high commission rates.
“Our agents will work with state-of-the art technologies, including the latest iPads, with intensive online marketing and modern operating techniques & systems. Our new-generation real estate company will make smarter use of agents’ time, meaning they will individually earn more while they deliver a lower fee to their clients, even at the same number of sales.
“Realistically, with a better proposition for the home seller, the agent’s sales will increase, we believe, more than twofold. Effectively, we have taken a large part of the administration & management overheads out and shared those savings between the customer & the agent.”
Mr Pero said plans for the company included bringing franchise opportunities down to a salesperson level, which could include exclusive territory ownership: “To date, the industry has been unable to provide long-term incentives & ownership opportunities for high-performing salespeople. Our model has been proven in the home loan industry, where our people own their businesses. We really believe in the owner/operator business.”
Want to comment? Go to the forum.
Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.
Invessi - there have been a few other articles and quotes around this venture. Mike Peros comment that these "high performer' Agents will be working from the back of a car is interesting.
Also this "reduced Fee" model has been tried before. Remember The Jones, Ghecko and Green Door. All tried, all failed.
IMO its not really a creative new solution - its simply a cut price strategy which are so often doomed to failure. If he wanted to get real inventive why not sell on a contracted hourly rate basis. Take a $500,000 sale at 2.95%. Thats a fee of $14,750. At $200 an hour (and I reckon thats generous for a real estate agent) does it really take 73 hours to sell a property. Whenever I've sold my properties its taken me no more than 15 hours - and that includes open home hours.
Real estate agents really need to get their act together. Say a competent agent can sell a house in 20 hours at $200 an hour. Thats over $400k a year income. Knock off overheads and franchise fees they are still looking at bringing in over $100k a year. Why punters use Agents remains beyond me.
Mini... I had that discussion with a friend just last Saturday. About the costs of Real Estate agents. My question is this: If they make so much money and barriers to entry are almost non-existent, then why is not everyone doing this and earning $100k per year? Or do they really earn that much? Why have the 2.95% merchants failed? Costs still too high? Im curious as I am a bit naive on this topic.