@ PioupiouYou previously mentioned in one of your posts that it is bizarre if PNC takes the profit to the Profit and Loss. Madtrader also make a good point on the FV. But god to dig deeper to see once the profit is reported then it gets distributed as dividends. The operating cash flow does not seem to support that view because there is not enough cash to pay the dividends. I think these were paid from capital raises. Obviously cash collection are up because they buying more debt, but also important to look at the amortisation ratios you mentioned. @ Madtrader, well done on highlighting Portfolioplus. From his post he seems to be from Katana Asset Management which has a large exposure to the stock and must be hurting now.
My views on the lawyers opinion - Will PwC change its treatment again. Something must be very wrong to change 180 degrees. Changing back could brinhva class action because shareholders have lost mone. - Will another accounting firm agree to this treatment. The AFR article suggests it is the only company in the world to adopt this treatment. They also refused to speak with AFR which also is odd. - Bringing a lawyers seems that there is a case to answer probably ASIC or ASX. - CCP and CLH all buy the same credit card and personal loan debts from the Big 4 banks and use amortised cost. What is PNC buying that is so unique in the world that it requires a lawyer's interpretation? - their CFO also highlight that he does not know what will happen to the profit figure if they move to amortised cost.I think we all wait till after June because it appears a legal battle has started and ASIC could get seriously involved soon.
PNC Price at posting:
$2.52 Sentiment: Sell Disclosure: Not Held
(20min delay)
