Investors, do not be fooled by the media strategy from this bank - they are in trouble. Statements like - people are paying and the economy is turing around, bad debts are reducing, investors are High Net Worths with average of $70,000 loans etc is nothing short of propaganda.
It is also self fulfilling that if they made a big deal about how many people really arent paying then surely this would be an incentive for more people not to pay.
Consider the following:-
the total loans are more than 5 times this years profit BAABL is NOT a big bank how can there only be $20m of bad agri loans when one group has gone to court over a an amount larger than this to stave off being listed with VEDA AND were successful there are unconfirmed reports that the bank collectors are chasing the women to put fear into the family and encourage payment why have BAABL only taken 3 guys to court for non payment of $1.5m - how did they pick out these 3 guys out of the whole list of non-payers - answer is they wanted to put in the press a tough stance on non payment, how did that case go? anyone know
This is far from over. IS this bank really going to send thousands of investors to the wall or at least black list them? can they prove that they own these loans if you were a 2008 investor who borrowed from GSF (a subsiduary of ASX GTP) and they didnt plant your trees, how can seriously they collect the money for doing so? - presumably, this money should have been held on trust for the scheme and used for planting - if it wasnt - then go get in the queue as a creditor Bendigo.
DOnt be fooled punters - this bank is in trouble and is doing its best to collect as much cash as it can.
Who made the strategic decision to expsoe the bank to half a bill $ of agri loans - bad move banko and you are gonna pay for it over the next 12 months
GTP Price at posting:
12.0¢ Sentiment: Sell Disclosure: Held
