i'll play. SKY. With huge writeoff of Goodwill (is there a bigger trough with piggy snouts in it?)
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Actually - I think we only did enough flogging if & when all the people responsible for this mess sit behind bars. Given that they don't (yet) - clearly not enough flogging done.
Still a good idea to consider who is next? I'd propose to start with the companies who have similar quality of governance like CBL had. However - THIS is the CBL thread! Shouldn't this go into a new thread? We could even start another competition - the winner is who correctly predicts (and in advance) the most defaulters during the calendar year.
OHE wouldn't go broke. It will get taken over first.
PEB - floated by Forsyth Barr eon ago and with Harbour as a shareholder (and was with Wynyard and CBL too!) - they know how to pick 'em!
Forsyth Barr - Feltex, Wynyard, CBL and one could also add, Credit Sails and South Canterbury Finance!
Those that thought they understood CBL only understood what was available to the market... at face value, a rather sound business.
Although I am angry at myself for getting it wrong... I can still justify the initial investment given what was in front of me.
From being up 20% to possibly being down 100% was not on the list of outcomes I had in mind... 3% of my portfolio so could be worse.
As expected, an avalanche of articles and assessments about CBL :
http://www.nzherald.co.nz/business/n...ectid=12004875
Excerpt : "But in an email Harris said there was a wider story to be told about how CBL got to where it is and where it might be heading. "The facts will show some mistakes we have made, and the cause and effect of those, and just where we are and why, along with our plan for dealing with these issues."
Fair enough - should provide the guy a chance to give his side of the story. So put away those stones in the meantime?
https://www.insurancetimes.co.uk/col...426527.article
https://www.insuranceage.co.uk/insur...ance-affidavit
Alpha & Elite named as the two insurance companies CBL paid money to, in contravention of RBNZ's instructions.
Of concern is this : "Elite went into run off in July 2017 and the legal document noted that at the time PwC, which was conducting a report into Elite, was concerned about CBL’s ability to meet reinsurance obligations to Elite.
PwC also questioned the sufficiency of CBL’s reserving and said CBL’s reserves were materially lower than those of Elite, a Gibraltar legal expenses insurer."
Alarm bells here - CBL's situation was already of concern way back in July 2017.
Who knew, why was the market not advised and who sold shares with that knowledge?
http://www.nzherald.co.nz/business/n...ectid=12005410
Brian Gaynor with his take on CBL.
Sorry, Brian but you are/were of the biggest supporter of wunderkid Weldon's style of running NZX (into the ground) so your criticism of the NZX means bugger all.