Originally Posted by
Xerof
Percy, to be fair, not everyone has added to their portfolio at lower prices, as you and indeed others have done as well. There will be a significant body of holders still well under water with long term holdings originating from PGC, and Reporters will always seek out the hard luck story, rather than print any hubris or explanatory statements issued by the Chair.
I get the impression you think I am still 'down' on HNZ
i said at the time Kerr had to bail out, that the fog had lifted for HNZ, and before that my stance proved to be correct - price dropped from 88 to 45 for HNZ, and god help the holders of PGC and PGW. they must have deep pockets. Since then, other than saying the fog had lifted, and good luck to holders for the future, but personally I wouldn't be buying, I have not made comment.
my recent comment wrt IT was simply implying that if they only had Sovereign as a mainframe accounting system, then a significant amount of capex will be required to bring them into the 'banking'scene. Sovereign doesn't cut the mustard in my experience with it. I said I didn't know for sure if they (still) did or not, but it's not for me to find out
i still hold the view a banking license is moral hazard in this case. Whilst their loan portfolio mix remains as it is, the most appropriate regulatory regime is NBDT. I also see the Credit Rating as a problem for RBNZ - one downgrade and they become 'junk' rated. Not saying that will happen, but it is a risk for the Authorities to sweat on. So why would they?
this is my view, and I could be wrong. I wont lose any sleep either way, as I dont own any shares. My original concern with this whole sorry episode is now finally in the hands of the appropriate authorities. I only hope their investigations are exhaustive.....
Regards
Xerof