Originally Posted by
Raz
Ok it is Southland with high price inputs, clear area to begin with from a bank risk management exposure and the bank in not HNZ however have you considered...
If HNZ ended up having a substantially higher than average loss in regard its exposure would that be material to the share price? It seems interesting that one name comes up more often than not in discussions around acquiring market share they have taken on players no other bank wanted to retain or would fund.
Also has the total exposure increased materially given the banking community as a whole has increased, to this sector, facilities which total 4 Billion in the past season.
Simply that reflects funding working capital support, for now.
I think it all has the potential to at least increase share price volatility, that is where its relevance to HNZ certainly come in.
This is in similar vein to my original comments on Air NZ and see how the threat or risk of competition has cause some serious price volatility.