Originally Posted by
Enumerate
From a balance sheet perspective, even a "retail novice" can be satisfied that the basic levels of equity are already in place (mainly as equity assets - not as tier 1, but this will sort itself out over time).
Reading SCF accounts is actually straight forward. If you compare this to Macquarie, for example, it is childs play. Macquarie accounts, with the twists and turns - it is surprising anyone believes they understand them.
Back to SCF. It is also fascinating and rewarding to understand the impairment mechanisms. Would you impair a solid loan receivable at 9% because market rates should be higher? The nervous schoolgirls over at interest.co.nz seem to believe this is a cash impairment! Various Lost Souls believe this loan should probably carry a weighted risk rating of 350% for capital adequacy rules.
Back on this SCF thread no one else posts anything quantitative at even a balance sheet level - so you expect me to?!?
The real interesting bit is the Income Statement analysis. What hope is there of intelligent, informed discussion here - when we can't even get past a pro forma balance sheet?
I have detailed my conclusions and posed a number of questions that I was hoping would lead to informed discussion on SCF financials. No one has responded. Further, I have no intention to "file a report" when the full year accounts will set a new datum (these are due in about one month).
There are other basic questions to ask. Why is it that so many Aucklanders, with no financial exposure to SCF are so terribly interested that every aspect of this company be portrayed in the worst possible light? Why are there so few people willing to declare their interest? I am just a humble psychic tea leaf reader ... with a few SCFHA ... I don't have significant financial connection in the South Island ... I am not a Viaduct "player" ... I find these things difficult to understand.