Looked up Stock co (SCo) via website and Elders an report. SCo lends 100% finance for livestock and gets security over stock. That is the very high risk end of agric lending. They need to charge high int rate to offset risk. 2021 ELD an report says SCo had $100m loan book, p103 says ELD 30% equity was $10.8m 2020 ELD share of net profit was $(1.3m), 2021 equity was $10.9m profit $0.09m. So high risk low profit acquisition. HGH has also recently purchased Challenger Bank.
Interesting analysis of complicated co I have never heard of. Just wondering how the reverse mortgage loan book will impact on debt and equity into the future. Reverse mortgages are a drain on cashflow and seem to increase debt at the expense of equity % so is this offset by a high margin? Also interested to know more about Stock Co (guess I can look it up myself). Aus agricultural lending can be very high risk, that would change the risk profile of HGH.
Looked up Stock co (SCo) via website and Elders an report. SCo lends 100% finance for livestock and gets security over stock. That is the very high risk end of agric lending. They need to charge high int rate to offset risk. 2021 ELD an report says SCo had $100m loan book, p103 says ELD 30% equity was $10.8m 2020 ELD share of net profit was $(1.3m), 2021 equity was $10.9m profit $0.09m. So high risk low profit acquisition. HGH has also recently purchased Challenger Bank.
Interesting analysis of complicated co I have never heard of. Just wondering how the reverse mortgage loan book will impact on debt and equity into the future. Reverse mortgages are a drain on cashflow and seem to increase debt at the expense of equity % so is this offset by a high margin? Also interested to know more about Stock Co (guess I can look it up myself). Aus agricultural lending can be very high risk, that would change the risk profile of HGH.