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RHG - RHG Limited

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Hows the timing of this IPO :eek:

Listed on 27 July 2007 at $2.50.

Over 12 days has lost 50% of its share value.

30% today alone on Credit Market woes that may hurt FY08 Earnings.

Yet only yesterday, Credit Suisse upgrades Rams Home Loan business to Outperform? Are they serious? :cautious:
 

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Re: RHG - Rams Home Loans

Bought a few of these today. My research shows that their high risk loans require mortgage insurance. I think they may turn out to be one of my better buys.
 
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Re: RHG - Rams Home Loans

Hows the timing of this IPO :eek:

Listed on 27 July 2007 at $2.50.

Over 12 days has lost 50% of its share value.

30% today alone on Credit Market woes that may hurt FY08 Earnings.

Yet only yesterday, Credit Suisse upgrades Rams Home Loan business to Outperform? Are they serious? :cautious:
At one point RHG was down today around 50c that means it was trading at 20% of what it was a few days back :eek:
 
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Re: RHG - Rams Home Loans

Nobody in the mortgage industry will touch them - the forecasts we done on the basis of average profitability margins on their total loan book.

Problem was they spent 18 months writing unprofitable business so when they needed to have the forecasts done (and of course, sell themselves to "sophisticated investors") they were calculated on an inflated book of sub standard quality.

FWIW once a loan is securitised in Australia it generally does not have to be constantly fed by short term bond issues - we operate very differently to the US so only new business at lower credit ratings is being hampered (secured loans are generally done so in Australia over the life of loan).

Which of course brings us back to RAMS writing unprofitable business again, impacting on their ability to raise higher credit bonds & debentures.... so the merry-go-round begins...
 
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Re: RHG - Rams Home Loans

Bought a few of these today. My research shows that their high risk loans require mortgage insurance. I think they may turn out to be one of my better buys.
Most securitised lenders in Australia do. FWIW RAMS covers the costs below 80% like most lenders, which really just eats margin as well.
 

borat

Jagshemash!
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Re: RHG - Rams Home Loans

It has to leave those who took up the IPO very dissapointed. I've had a look at their site for any announcements re the recent plummet in thier SP. Anyone heard anything?

Any other Australian mortgage lenders that are as exposed as RAMS to the subprime dilema?

Cheers?
 
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Re: RHG - Rams Home Loans

Say what you will, the move by David Coe to buy 500 K worth at 1.36 in his super fund yesterday was pretty gutsy.... And I see PPT in on the Company at the closing bell as a substantial shareholder.......

As low as 50 cents today, as YT indicated - could have made money, but picking a bottom with this one is like picking a needle in a haystack.

Fundamentally, it's a geared business and the costs of funding are much higher due to the liquidity crisis. The pro forma forecast indicated a 1.2 Mil drag on EBIT for every 1 basis point compression of margin - god knows what the margin compression has been due to the sub prime mortgage crisis.

Personally, i'm not game to enter. But if it were to solve it's issued, it's worth a lot more than 90 cents.

Cheers
 
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Re: RHG - Rams Home Loans

Say what you will, the move by David Coe to buy 500 K worth at 1.36 in his super fund yesterday was pretty gutsy.... And I see PPT in on the Company at the closing bell as a substantial shareholder.......

As low as 50 cents today, as YT indicated - could have made money, but picking a bottom with this one is like picking a needle in a haystack.

Fundamentally, it's a geared business and the costs of funding are much higher due to the liquidity crisis. The pro forma forecast indicated a 1.2 Mil drag on EBIT for every 1 basis point compression of margin - god knows what the margin compression has been due to the sub prime mortgage crisis.

Personally, i'm not game to enter. But if it were to solve it's issued, it's worth a lot more than 90 cents.

Cheers
I hear RHG needs $5 Bln ASAP!!!!!!
Crikey!
I am glad I didn't get sucked into this (Titanic style)maiden voyage

Salute
 
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Re: RHG - Rams Home Loans

Not ASAP. 180 days. 6 months is a long time in credit circles and plenty of time for them to finance that.

I got in at .89c on Friday and think that Monday will see their share price close $1+. Will wait and see.
 
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Re: RHG - Rams Home Loans

Hi guys,

I'll give it to you short and sweet. I want to buy $5,000 worth of RHG shares... am I insane? How do I know when is the right time to buy? Can I have a broker buy them for me at a nominated mark.. say 0.50c a share? Further, is $5,000 to smaller amount to start buying shares.

I have never bought shares before, this will be my first transaction :) I'm excited!

One more thing, if you buy $5,000 of shares at 0.50c each and they go back up to $2.50 a share, will I have (5 * $5,000) $25,000 worth of shares?

Regards, Kaydence
 
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Re: RHG - Rams Home Loans

Hi guys,

I'll give it to you short and sweet. I want to buy $5,000 worth of RHG shares... am I insane? How do I know when is the right time to buy? Can I have a broker buy them for me at a nominated mark.. say 0.50c a share? Further, is $5,000 to smaller amount to start buying shares.

I have never bought shares before, this will be my first transaction :) I'm excited!

One more thing, if you buy $5,000 of shares at 0.50c each and they go back up to $2.50 a share, will I have (5 * $5,000) $25,000 worth of shares?

Regards, Kaydence
I'll have some of those RHG at 50c. Where and when can I get them? Seems a good bargain. Too good to miss out on.
 
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Re: RHG - Rams Home Loans

Hi guys,

I'll give it to you short and sweet. I want to buy $5,000 worth of RHG shares... am I insane? How do I know when is the right time to buy? Can I have a broker buy them for me at a nominated mark.. say 0.50c a share? Further, is $5,000 to smaller amount to start buying shares.

I have never bought shares before, this will be my first transaction :) I'm excited!

One more thing, if you buy $5,000 of shares at 0.50c each and they go back up to $2.50 a share, will I have (5 * $5,000) $25,000 worth of shares?

Regards, Kaydence

No you are not insane. It is hard to pick the right time to buy Rams because if the crash keeps on going the share price will fall once again, otherwise it will probably keep rising. You can have a broker buy the shares at a nominated mark, but there is no point putting a buy order at too low a price because you'll never get them. $5000 is not too small an amount for buying shares, it all depends on how much money you have and how much you are willing to invest. And yes if you bought Rams for 50 cents and if it goes up to $2.50 you will have $25000 worth of shares.

No one can tell you what price to buy Rams at, you have to do your own research and pick the price yourself.
 
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Re: RHG - Rams Home Loans

Dr-K,

Why do you want to make RHG your first share investment? Sure, it could go back up to $2.50 making you that 25k you are dreaming of. But this is a wounded company and could finish belly up if world credit markets sicken further.

RHG is a gamble at the moment. Can you afford and are you prepared to lose your $5000? If not, look for something a little more conservative for your first investment. This correction has brought value back to many shares that are a much safer bet.

A few blue chips worth looking at - WPL, AGK, NAB, IAG, ORI, LLC

For a bit more risk/return - PBL, KZL, JBM, OSH
 

ROE

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Re: RHG - Rams Home Loans

I'll have some of those RHG at 50c. Where and when can I get them? Seems a good bargain. Too good to miss out on.
I got 19000 shares at 0.69 cents but there is no way you can get them @ 50 cents unless you have some sort of automatic trigger..when
I come in at around 60 cents it slowly creep up and I cant get them so I said stuff it I buy at the market price and end up with 69 cents :) ...

I read the announcement when it shares plummet and damn they all got it wrong and trade on fear so i load it up... if I was to have 100K in my account I would have it all in but happy with what I got.. :D
 

ROE

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Re: RHG - Rams Home Loans

I hear RHG needs $5 Bln ASAP!!!!!!
Crikey!
I am glad I didn't get sucked into this (Titanic style)maiden voyage

Salute
read it carefully most poeple see that and FEAR run through them understand it and you would made a killing with the announcement.
even if they cant do it in 180 days their cost of borrowing maybe 0.25 higher and it only going to cost them 10Mil out of their 43mil profit so ALL good no gloom and doom..
 
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Re: RHG - Rams Home Loans

read it carefully most poeple see that and FEAR run through them understand it and you would made a killing with the announcement.
even if they cant do it in 180 days their cost of borrowing maybe 0.25 higher and it only going to cost them 10Mil out of their 43mil profit so ALL good no gloom and doom..
Good luck ROE. You've done very well indeed. RAMS was certainly oversold, but I'm worried about the funding issue.
DYOR
 

ROE

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Re: RHG - Rams Home Loans

Good luck ROE. You've done very well indeed. RAMS was certainly oversold, but I'm worried about the funding issue.
DYOR
I offload it all today at $1.20 :) so the luck is now lock in and on my side :D
I'm slowly cashing up and wait for another storm.:D
 
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Re: RHG - Rams Home Loans

Hello,

What is the recent drop in RAMS share price? Do we not know something that the market already does?

Seems like a bargain?
 

Ken

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Re: RHG - Rams Home Loans

I have read up on RHG.

If you go on the very buy in gloom sell in boom.

RHG is the perfect buy.

But one gets the impression more rough times ahead.

At the end of the tunnel. RHG may just escape and make a lot of people very rich, or poor.

I think the day traders are all over it at the moment.

Volume will drop off at some point then we will get a clearer idea of where we go from 75 cents.
 
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Re: RHG - Rams Home Loans

I suggest due care with this one as Rams is reliant upon mortgage brokers for the bulk of business.

I have it on good authority that at least one of the main aggregators may be recommending to their mortgage broker members that due care be taken before recommending Ram products to clients.
 
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