Debt Free Direct Share Discussion Threads

[bigbobjoylove] 08/10/2007 14:23

all looks way too dodgy now, saw it with ACE. The sector collapse will come next2 months. Best regards.

[deano1967] 08/10/2007 14:11

Lenders can block but they can NOT deal with arrears themselves, their collections dept are not big enough, they will have to take whats offered or start to see more bankruptcies....SIVA, being proposed Simplified IVAs due next year will require 51% approval from creditors, so i see compromise coming...

[bigbobjoylove] 08/10/2007 14:03

Banks block more overstretched borrowers from scheme to reduce repayments:

[bigbobjoylove] 08/10/2007 14:02

Banks block more overstretched borrowers from scheme to reduce repayments:

[jonc] 08/10/2007 13:48

Isn't a credit crunch made by Cadburys?

[bigbobjoylove] 08/10/2007 13:29

The Times
October 7, 2007


DebtMatters

LAST week was a bloodbath for shares in debt-adviser groups. DebtMatters put itself on the block after it warned that competition and the hardening attitude of banks to individual voluntary arrangements (IVAs) had in effect scuppered its business model.

DebtMatters shares dived 73% on Monday. Shares in the rival Accuma plummeted 23%, those of market leader Debt Free Direct 29% and Debts.co.uk's stock fell 21%. Debt Free Direct shares are down 65% from a year ago. Accuma has lost over 92%.

Debt Free Direct tried to put on a brave face, arguing it did not share concerns that IVAs were becoming unprofitable.

IVAs, where borrowers can write off a substantial portion of debt in return for set repayments, have boomed in recent years. They do have a role, but right now the industry looks decidedly shaky.

Some banks have refused to use IVAs. The Insolvency Exchange has made big changes to the criteria used by practitioners when they recommend IVAs. The British Bankers' Association is screwing down the costs that IVA providers can charge.

There are similarities with the showdown a few years ago between accident-management groups and insurers. The IVA industry will be hoping that it, too, can reach a compromise, regroup and rebuild, but it will be a long slog.

I have warned before that shares in debt advisers are hugely risky. Last week underlined that the IVA market is toxic. Any investor foolish enough to have hung on should get out swiftly.

[bigbobjoylove] 08/10/2007 13:28

The Times
October 7, 2007


DebtMatters

LAST week was a bloodbath for shares in debt-adviser groups. DebtMatters put itself on the block after it warned that competition and the hardening attitude of banks to individual voluntary arrangements (IVAs) had in effect scuppered its business model.

DebtMatters shares dived 73% on Monday. Shares in the rival Accuma plummeted 23%, those of market leader Debt Free Direct 29% and Debts.co.uk's stock fell 21%. Debt Free Direct shares are down 65% from a year ago. Accuma has lost over 92%.

Debt Free Direct tried to put on a brave face, arguing it did not share concerns that IVAs were becoming unprofitable.

IVAs, where borrowers can write off a substantial portion of debt in return for set repayments, have boomed in recent years. They do have a role, but right now the industry looks decidedly shaky.

Some banks have refused to use IVAs. The Insolvency Exchange has made big changes to the criteria used by practitioners when they recommend IVAs. The British Bankers' Association is screwing down the costs that IVA providers can charge.

There are similarities with the showdown a few years ago between accident-management groups and insurers. The IVA industry will be hoping that it, too, can reach a compromise, regroup and rebuild, but it will be a long slog.

I have warned before that shares in debt advisers are hugely risky. Last week underlined that the IVA market is toxic. Any investor foolish enough to have hung on should get out swiftly.

[bigbobjoylove] 08/10/2007 13:25

"DFD will not tell us the run-rate in the second half of the year and it
seems to be a number that they are running away from," an analyst at UK broker
told Thomson Financial News."

creek creek.

[bigbobjoylove] 08/10/2007 13:24

"""DFD will not tell us the run-rate in the second half of the year and it
seems to be a number that they are running away from," an analyst at UK broker
told Thomson Financial News.""

yes, vastly increased costs. Yeah i'd go long of these, lol, see you down past 125p shortly.

[don777] 08/10/2007 11:44

2,125,694 5.07
So Deutsche Bank increased holdings...

[twentyoneeleven] 08/10/2007 10:10

Yes BBJL ... much better for the banks to refuse IVAs where they might get at least some of their money back, and force everyone into bankruptcy where they'll get none of their money back ... that'll do wonders for their profits, eh? Do you actually understand the implications of a 'Credit Crunch' for all parties concerned, or is it just something you've picked up in the press lately?

[bigbobjoylove] 08/10/2007 09:12

and now this carp will be going back to 40p as the business model has finished. Press said sell well you can at the weekend. I say be quick as these IVA firms could go to the wall in quicktime.

[bigbobjoylove] 08/10/2007 09:07

looks like it's about to fall off a cliff this one. In fact whole sector looks like it will fold and good riddance. Banks now refusing IVAs with credit crunch. Short to 0p i say.

[diogenesj] 02/10/2007 21:54

Yes, short closing, I expect.

[sat69] 02/10/2007 18:17

Looks like Simon has closed his short - just when I sold out!

[alexx] 02/10/2007 17:33

Been out all day, it's managed a massive rise, 2/3 of yesterday's fall wiped out. Is there any reason or just the market being silly.

[sahara] 02/10/2007 08:41

Not all apples are the same!

S.

[simon cawkwell] 01/10/2007 20:52

Gentlemen,

Correct if I am wrong but DEBT cancelled their advertising programme since its cost per case generated was not recovered by the fees from work. Why should DFD be any different?

Further, the vast bulk of work for these IVA companies can only have been generated by advertising.

That is yet another reason why I think it is kaput for DFD.

I expect there was short closing today and wild guesses on the long tack. But all that has happened has been to offer shorters another bite of the cake.

Simon Cawkwell

[sahara] 01/10/2007 18:43

So you aren't one of us who have been capitalising on pawnbrokers like this one then.



S.

[jonc] 01/10/2007 18:08

I would never buy shares in a company where you have to be skint to be a customer......

[sahara] 01/10/2007 16:49

Yik I was looking in here today to evaluate garnering a position, with DEBT looking like a basket case we could see a consolidation of the few remaining players.

Financial institutions with a snowballing default on debt repayments will in my view wish to cling to any cash salvaging procedure they can. Debt problems are not going away tommorow or the day after, and any scheme that may reduce or turnaround a hopeless debtor has got to have at least some value to all concerned.

S.

[yikyak] 01/10/2007 16:11

Not invested in DFD but it strikes me as though in this climate of risk adversion i'm not sure this happy IVA negotiating model will work anymore. I believe creditors may bypass 'longer term' solutions and go for the debtors jugular instead for a quick kill and book the loss.

Ineresting to note that credit card debt can no loner be entered into a bankruptcy in the US.

Gold is for kings

Silver is for gentlemen

Barter is for peasants

Debt is for slaves

[simon cawkwell] 01/10/2007 10:32

miti 1000,

Thank you.

ARTA is off topic. However, the problem is borrowing stock. It is of course insanely overvalued and, in due course, will collapse from its current 260p.

Simon Cawkwell