Conister Trust - Who's In Charge And What's Best For The Shareholders And Depositors?

[manxchatterbox]

http://www.wwwolf.co.uk/ifs/9706_iv1.htm

 

 

our local media doesn't seem to have followed up and done an interview with JM as to why he felt the need to invest in Consiter - so I'm wondering what's behind his investment?

[Fleur]

Questions, questions, questions.

 

Don't you have any ideas about this then MCB? Come on now, I just bet you do.

[Amadeus]

MCB: Your GP just called - the medication has arrived...

[T Reznor]

JM's goal is to move up the Times Rich List every year, so somehow buying conister will help him to do that...

[hboy]

our local media doesn't seem to have followed up and done an interview with JM as to why he felt the need to invest in Consiter - so I'm wondering what's behind his investment?

 

To make a profit? Have you considered that fact?

 

Shock headline - "Jim Mellon invests £5m into local company and, shock, horror, expects a return on his investment."

 

Or perhaps you are you suggesting otherwise and that he's investing £5m to deliberately de-stablise the Manx economy?

 

PS: MCB did you write the "Dog Poo Island" letter in today's Examiner. Are you revealing your true identity at last?

[Deejay Denzel]

Black Horse have Kingsmead now so maybe he and his watchers have spotted a weakness in the market that we all don't know about.

[manxchatterbox]

this weeks IOM Examiner - Business main story is headlined:- "Conister looks to private banking"

 

it goes on to say that JM has acquired a seat on the board by buying 29.7% of the company - 12m new shares at 45p each (the market price at the time was over 70p) and that it'll use the £5.4 million recv'd to re-focus on offshore private banking.

 

it'll be interesting to see if the deposit book expands as JM put spare cash in or whether the loan book expands as other depositors monies are lent to JM buisinesses at favourable rates.

 

hopefully the board will scrutinise more than it would otherwsie do any deals involving JM - and that it'll be strong enough to stand up to a director bringing ideas and business opportunities and at teh same time a shareholder who could influence directors remuneration.

 

lessons of history.....hopefully the FSC is up to date with monitoring sophisticated financial dealings....

[hboy]

it'll be interesting to see if the deposit book expands as JM put spare cash in or whether the loan book expands as other depositors monies are lent to JM buisinesses at favourable rates.

 

hopefully the board will scrutinise more than it would otherwsie do any deals involving JM

 

Thats a pretty strong allegation / suggestion to make, especially about a guy who has enough money to sue your ass and the collective asses of your whole family and friends (pets included).

 

Is there something you want to say about Mr Mellon more directly?

 

Are you suggesting that this is some form of ruse?

 

He's only invested £5m and the guy is worth about £450 million - so I doubt he needs to "dip the till" at Conister if that is what you are suggesting in your usual clumsy half-informed way.

[manxchatterbox]

He's only invested £5m and the guy is worth about £450 million - so I doubt he needs to "dip the till" at Conister if that is what you are suggesting in your usual clumsy half-informed way.

 

...that was not what I was suggesting at all... your words not mine...

 

....but if he's got so much cash and 30% of Conister only cost £5.4m why didn't he check his back pocket and cough enough to buy the whole Company???

 

Perception....it looks better if not owned outhright and allows the blame to go onto others if say a loan doesn't perform and losses are realised.

 

As I said the board will IMO have to be more diligent than they may have been in the past...it remains to be seen how the future performance of the Company benefits the other 70% of the shareholders many of whom are small local investors.

 

If the share price doesn't recover or the dividiend yield go up then questions will have to be asked as to who is benefitting.

 

and with the share price having "collapsed" 'cos of the rights issue if the Co is such potential good value for money then will there be other large investors keen on getting an interest in an established banking licence???

[hboy]

...that was not what I was suggesting at all... your words not mine...

 

I'm sorry I quoted your words ... not mine. I'm sure other people read them the same way so you want to be more careful how you phrase things.

 

Conister could have easily raised £5.4m in the market, so the fact that they did a deal with Mellon strikes me as strategic. They need to diversify out of consumer credit where there is too much exposure locally and get into offshore & local private banking which is where the profit is currently. Mellon is the guy to work with them on that as they have the basis of a good brand with the history of Conister.

 

As a casual observer its a good deal all round provided nobody falls out.

 

Suggesting otherwise smacks of naiviety.

 

As I said originally you seem to think that this undermines the whole fabric of the Manx economy.

[haX0red_Account]

can't say I agree with your criticism of mcb here for once; reasonable question I'd say and stop getting touchy about legal action. Nobody's said jack about anyone's integrity. Tell you something- conister's prospects of getting a foothold in private banking are less than zero. That plan is dead before it even started and if I was a shareholder Id be out of it. don't see how any of that would destabilise the iom of course. They're just a minnow in a massive pond. It is though I think a cheap banking licence.

[hboy]

can't say I agree with your criticism of mcb here for once; reasonable question I'd say and stop getting touchy about legal action. Nobody's said jack about anyone's integrity. Tell you something- conister's prospects of getting a foothold in private banking are less than zero. That plan is dead before it even started and if I was a shareholder Id be out of it. don't see how any of that would destabilise the iom of course. They're just a minnow in a massive pond. It is though I think a cheap banking licence.

 

Well as I looked at buying shares on AIM I'd agree to disagree. It also smacked to me of MCB saying "Don't agree to anything that slippery chap suggests"

 

The last thing I would want to be in at the moment is consumer credit and vehicle financing. When the sh*t hits the fan you want to be secured on property or shares not rapidly depreciating vehicles. I understand the banking industry and think they have a good shot at it.

 

As I say - agree to disagree. But I think MCB's suggestions wrere pretty clear.

[haX0red_Account]

yeah, kinda agree with you there- it was a sort of macchiavellian remark but respect your points, yer a smart dude. Just think it;s a duff business, parochial, tight on resources and provisioning and not got a chance, actually reckon some of their customers would have a better credit rating than the company which they've borrowed off! and like you say, I wouldn't want to be in that space and looking for resources! cheers for that- sound points

[hboy]

actually reckon some of their customers would have a better credit rating than the company which they've borrowed off!

 

Well £5.4m puts a lot into perspective.

 

I have to say I've always liked Conister.

 

If your a certain age they always bought your first car for you!

[Illiam Dhone]

Conister could have easily raised £5.4m in the market

 

Not sure if they could have, dude. They desperately wanted to sell themselves and nobody wanted to bite the bullet. The business is surely a tiny local piece of nowt in international banking terms. That said, it must be worthwhile questioning someone moving in big time (even if that big time is a small piece of their personal fortune).