Business & Investment

PNC-Pioneer Credit | Australia Equity Forum

I was completely confused by PNC. At face value, it seems to offer an opportunity … but looking at how PDL’s “change in value” (CIV) is calculated completely destroys the opportunity to determine credit quality.
Simply put, they have their own DCF, with assumptions that go against the PDL method. We may adjust this value downwards depending on the presentation, but there is no place to quantify it. This is very different from the prepaid reserves that CCP makes and are then amortized by the straight-line method (I think it’s the straight-line method …).

So far, they are working well, because NPAT is heavily dependent on CIV. Trading with 8x futures returns on a strong PDL investment doesn’t make me comfortable.

And today, we are informed that MD and directors have each sold more than one million shares (directors through Banksia Capital) to investors at a price lower than the market price. :confusion:

The company has several other investments (about 17% of Goldfields, ADI, etc.) and productivity investments due to operating costs (telephone system upgrades were $ 1 million from memory).

PNC-Pioneer Credit | Australia Equity Forum PNC-Pioneer Credit | Australia Equity Forum

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