There is no doubt that the metrics indicate high risk
Why...because debt exceeds equity in a ratio of 6.5 to 1. A ratio similar to most Australian banks ..which are beholden to millions of depositors , a few dozen professional lenders and 2 regulators (APRA and ASIC).
Pioneer Credit is beholden to a handful of lender banks...most of which supply them with their $661m in collectible assets. And only 1regulator.
Were employment conditions to deteriorate so as to reduce by $100m that claimed asset of $661m to say $551m...what impact will that have on PNC's syndicated lenders. Their capacity to act is limited firstly by the customer relationship between them { why hurt the guy who takes our problem debts off our hands ..let's grant them a waiver and extend the debt by a few years and lumber them with a higher interest rate} and secondly the syndicate terms which will require them to act as one.
Is PNC's net assets $44m ?. No.
The realisable value in that $661m is considerably greater than the software generated balance sheet number of $304m. Let's say $504m.
So, Pioneer's net equity is closer to $170m { after we allow for the tax benefit of $70m in its accumulated losses}. And then there's the PwC claim . Lets allow $20m for that.
At current prices it suggests to me that ONC stock is low risk.
yes, still buying PNC.
- Forums
- ASX - By Stock
- Ann: Appendix 4D and Half-Year Report
There is no doubt that the metrics indicate high...
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add PNC (ASX) to my watchlist
(20min delay)
|
|||||
Last
46.0¢ |
Change
0.020(4.55%) |
Mkt cap ! $61.94M |
Open | High | Low | Value | Volume |
42.5¢ | 46.0¢ | 42.5¢ | $10.80K | 23.91K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 9390 | 42.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
46.0¢ | 30775 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 9390 | 0.425 |
2 | 15046 | 0.420 |
1 | 300000 | 0.410 |
1 | 25002 | 0.400 |
1 | 80000 | 0.320 |
Price($) | Vol. | No. |
---|---|---|
0.460 | 30775 | 2 |
0.465 | 40000 | 1 |
0.470 | 5479 | 1 |
0.475 | 46743 | 2 |
0.480 | 87223 | 5 |
Last trade - 15.51pm 24/05/2024 (20 minute delay) ? |
Featured News
PNC (ASX) Chart |