CGF

2.41%

$6.37 challenger limited

A small 'deterioration' is virtually certain, as we sell more...

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wg159

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28/12/18

21:31

Post #: 36977240
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Originally posted by Transversal: ↑

So the gist of the shorter's case is falling asset prices have a negative impact of CGF's capital requirement's triggering a capital raising = lower share price.

@donnyk01

To be honest, I am just speculating here, and I have no idea what the gist of the shorters’ case could be; why, of all the questionable businesses that are listed on the ASX, one would want to focus on shorting this one at its current price, quite simply escapes me.

Having said that, asset prices do have a direct impact on capital adequacy ratios, therefore I do feel it is important to run the maths as a sanity check.

So when CGF reports it half year results in Feb we hope to see the PCA ratio between 1.30 and 1.60 to signal the all clear?

Yes, it will be important to check where the PCA ratio is. From my estimates, a small deterioration is likely, but definitely not to an extent that changes the investment case for CGF; in particular, as things currently stand, I do not expect to see the PCA ratio anywhere near levels that could make a fresh capital raise necessary or prudent.

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A small 'deterioration' is virtually certain, as we sell more annuities our PCA ratio falls (presuming we don't raise or make extra capital) & we are most definitely selling more annuities.

Remember there is a long time left in FY19. This can & will change again.

CGF Price at posting: $9.44 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $6.37		Change 0.150(2.41%)		Mkt cap ! $4.402B

Open	High	Low	Value	Volume
$6.25	$6.43	$6.22	$26.64M	4.198M

Buyers (Bids)

No.	Vol.	Price($)
1	880	$6.35

Sellers (Offers)

Price($)	Vol.	No.
$6.37	999	1

View Market Depth

No.	Vol.	Price($)
1	65	6.280
2	3903	6.240
1	2400	6.230
2	10266	6.220
2	8048	6.200

Price($)	Vol.	No.
6.400	21000	2
6.470	267	1
6.490	1000	1
6.500	3979	3
6.520	9693	2

Last trade - 16.10pm 13/09/2024 (20 minute delay)

CGF (ASX) Chart

A small 'deterioration' is virtually certain, as we sell more...

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Vulcan appoints investment bank and M&A veteran to board

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Utah authorities sign off on Anson's lithium extraction plans at Green River

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

A small 'deterioration' is virtually certain, as we sell more...

Top Stories

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Vulcan appoints investment bank and M&A veteran to board

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Utah authorities sign off on Anson's lithium extraction plans at Green River

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News