sign up log in
Want to go ad-free? Find out how, here.

Allied Farmers shares collapse to 10c after 1.9 billion shares issued (Update 1)

Allied Farmers shares collapse to 10c after 1.9 billion shares issued (Update 1)

Shares in rural financing group Allied Farmers collapsed 32% to 10c a share this morning after Allied Farmers notified the market that 1.91 billion new shares had been issued to Hanover Finance investors in the wake of the debt-for-equity swap proposal voted through by a whisker last week. (Adds comments from Allied Farmers on how Hanover investors can get hold of their shares and closing price) Just over 1.4 million shares were traded in the first hour and the share price closed at 10 cents after 4.2 million shares were traded. The slump in the share price since the vote last Wednesday mean Hanover Finance investors have lost 52% of the value of their shares in four days. The shares were issued at 20.7 cents a share. Allied Farmers said it expected Hanover and United investors would be notified of their share allocations and FIN numbers from Tuesday onwards.

John Loughlin said shares were allotted to new shareholders on the evening of 18 December and allotment notices were posted on Sunday at noon. Share allotment notices should be received by new shareholders in the mail from 22 December Tuesday. FIN numbers enabling new shareholders to trade shares were mailed on Monday. "New shareholders wanting to trade Allied Farmers shares prior to receiving their FIN number by mail should contact a share broker who can obtain this information from the registry, Link Market Services, by providing the registry with an indemnity." All shares must be traded using a share broker, Allied said. You can follow the share price and trading volumes here.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

9 Comments

1.3 cents , now ! ........ Are you buying any / lots / or backing up the truck and grabbing all the stock that you can ?

The half year results ( to 31 / 12 / 2010 )  show no end to the blood-letting within Allied Farmers . A loss of 1.02 cents per share was recorded . Net assets of just $ 13 million now ( assets of $ 82 m. minus liablities of $ 69 m. ) ......... And at just 1.3 cents , that stock still sells at twice it's current asset backing ! ....... Market cap. of ALF is $ 26 million .

Why does the  Mark Weldon allow fools and bullshitters to list on the NZX ?

Up
0

Two and a half cents ! Well , I did say bail ............ I can recognise a howler of a useless stock when I see one ( my portfolio is chocker with the shockers ! )

 

Look on the brightside Hanover-Allied Farmers : You've still got 12 % equity value from the 20.7 cent conversion . Streets ahead of that other Handover Farmer , Alan Crafar .

RT

Up
0

Bail gang , bail ! On Monday morning ditch your ALF shares !!! Take the 12 % return on your original 20.7 cent conversion , from Hanover . Just be grateful to get anything at all out of this shamozzle . This debacle bodes ill for tax-payers who foot the bill for Allied Nationwide debenture holders . And it reflects poorly upon the NZX ( a.k.a. Weldonia ) for ever allowing this scheme of arrangement to rid Watson & Hotchin of their dirty laundry ,  to be listed as a viable investment vehicle .

Rob Alloway clearly is culpable for not doing due diligence on the Hanover accounts .

Allied Farmers prior to the Hanover deal , was being run into the ground . This was Alloway's last grasp at gaining some legitimacy for the company as a business . And he failed . Not surprisingly .

 

Bail you mad hoo-a's ! Imagine you're on the Titanic , 'cos Allied is sinking quickly  , and bail as fast as you can !!!!!!!!!!!!

Up
0

Shag me senseless ! The share price rose 12 % today , to 2.9 cents , after Allied Nationwide was placed into receivership . Go figure !

Seemingly , you Allied-Hanoverians only lost 86 % of your 20.7 cent shares ' value  , not 88 % , as I proclaimed . Guess I'm the dumbererest one here ;  you guys hang in there .

Up
0

Friend : If you start  from the top of this thread , you'll see that from 21 December 2009 I have been railing against the Allied-Hanover deal . And I have been exhorting shareholders to bail .

What have you been doing to highlight the crookedness of this whole deal ? Calling me an asshole adds nothing to the debate ..............Everyone on this website knows what a little gob-shite I am , already !

Up
0

Wow - wee : Allied Farmers has surged a whole 8 % today , to 2.8 cents ." Anonymous" , you're so right , what an asshole I am ! I have been screeching against this back-door listing , to relieve Watson&Hotchin of their cock - up , since 2009 .

Here in August 2010 , those 20.7 cent shares have rallied to 2.8 cents . So you were silent , but right all those months . But I was vocal ( a'la Bruce Sheppard ) but wrong .

2.8 cents is a good deal you reckon . Hmm ? I am an asshole , ain't I !

Roger T.

Up
0

2.5 cents ! Rob , you need help , buddy . Cancel 99 in every 100 shares . There'll be a more manageable 20 million on issue . And the price will rocket to $ 2.50 , back near Allied Farmers all time high . .........

....... OK , I know it's chicanery ...........but hey , they swallowed the shift from Hanover to Allied hook-line&sinker  ; gotta be worth a second drink at the well of stupidity !

Up
0

ALF : A full year loss of $ 77 million , and the auditors ( Price Watercourse Coopers ) have called into question your loan book , and your future as a going concern . Response from Rob Alloway ? To revisit the idea of a capital raising !

Sad . Very very sad .

Up
0

.... and there we have it , 0.8 cents for a share of this " business " ...... today they announce an exit from their failed Rural Merchandising division ..... the future of the company , we are told , is with rural Livestock !

Ummm , meebee I'm the dumbo here , but isn't that where the company started .

.. it has been an expensive journey , a " learning curve " as our American friends call it ... Watson & Hotchin proved Barnum to be correct , there is a sucker born every day .

Meebee Rob Alloway should've just listened more intently to his dear old granny , " stick to your knitting , sonny . "

Up
0