General Discussions

[ElwoodBlues1]

Mum and Dad investors and superfunds will see the last of the money.

Anything of worth will go to the creditors and the people left at the end of it will likely get nothing including the screwed over employees.

This is where investing in stocks is problematic.

There are as many creditors as there are unfinished homes, Id suggest there wont be much of anything after the Receivers sift through the books. The Andrews Government have gone quiet on the liquidation and dont appear to be offering any help either so I reckon homebuilders and staff will be short changed badly on this one.
Superfunds tend to go ASX top 50 stocks and mainly top 20 so more banks and miners etc, banks can have a few defaulters when building companies go broke but they usually find other ways to recoup their money and thats by hitting up other borrowers and adding some fees to accounts for mugs like us.
Its does pay to look at Companies a bit deeper than just the glossy brochures and if you look at Porter Davis they made a poor move in acquiring Engelhardt homes a couple of years ago and the CEO and ex CBA Private Bank Boss Adrian Hondros after extending his tenure with PD suddenly left as well and that was a bit of a red flag that something wasnt right.