RHG - RHG Limited

[Ken]

Re: RHG - Rams Home Loans

The million dollar question.

Is rams worth 75 cents, 30 cents, or $1, or $2?

Iframs is still booking profits and ends up paying dividend of 13 cents your looking at 17% yield.

Might not happen, but no one has given definitive answers on how rams is effected.

Sub-prime???

Money is going to be more expensive to lend, like oil has gone up, so has the price of money.

Is it going to stop people borrowing through Rams? Will Rams be able to offer good rates still? I guess those are the things that first come to mind.

Rams Home loans have a fairly strong name I would have thought...

12 months time will be interesting.

 

[Ken]

Re: RHG - Rams Home Loans

Well massive volume and a 10% increase.

There are 1 million share trades going through.

Takeover? Someone is buying a massive stake in this one.

 

[godzillaismad]

Re: RHG - Rams Home Loans

Yeah, some positive news might be announced shortly... I got some at 81 on friday... I think it's a speculative buy.

 

[Ken]

Re: RHG - Rams Home Loans

Up to 97 cents


Maybe it was oversold.

Who knows?

But you take the 20+% gains in 2 days anytime.

Closing on another high on big volume.

Much easier to fall than go up thats for sure.

 

[godzillaismad]

Re: RHG - Rams Home Loans

Hi Ken,

Still holding it now... I think someone has taken a big stake in RAMS and there might be some news... I'm not sure, it's all speculation at the moment!

Think might still got a fair upside with this rally... we'll see...

 

[Bullion]

Re: RHG - Rams Home Loans

Interesting indeed. Does anyone know if the last purchase of the day was from one buyer? About 1.4million shares in one hit it looks like.

 

[shares]

Re: RHG - Rams Home Loans

Jumped on ram's today, rumours of a potential takeover and also ...

http://uk.reuters.com/article/oilRpt/idUKSYD25668820070927

"RAMS is planning $250 million in a residential mortgage backed securities offer as it tries to overcome its funding problems."

 

[chansw]

Re: RHG - Rams Home Loans

Jumped on ram's today, rumours of a potential takeover and also ...

http://uk.reuters.com/article/oilRpt/idUKSYD25668820070927

"RAMS is planning $250 million in a residential mortgage backed securities offer as it tries to overcome its funding problems."

Westpac acquires RAMS franchise for $140m
October 2, 2007 - 9:23AM
http://www.smh.com.au/news/business/westpac-acquires-rams-franchise-for-140m/2007/10/02/1191091068157.html

Westpac Bank said it has reached agreement to acquire the RAMS Home Loans Group franchise distribution business for $140 million cash.

The business to be acquired includes the RAMS brand, franchise network and associated mortgage origination and servicing systems and contracts needed to run the distribution business.

Westpac is not acquiring the ASX listed RAMS Home Loans Group Ltd or its existing mortgage book.

"Acquiring this business extends our Australian distribution footprint and reach and dove-tails into Westpac's existing growth plans," Westpac's chief executive officer, David Morgan, said.

He said the acquisition will separate out RAMS franchise distribution business from its funding arm.

"The RAMS franchise model has proven to be successful and this transaction will allow it to continue," Mr Morgan said.

"This creates a sustainable future for franchisees and the RAMS brand.

"At the same time, the funding arrangements should provide support for the financing of RAMS existing mortgage book.

Westpac will provide up to $2 billion of financing to fund new business and to refinance a proportion of RAMS outstanding US XCP (extendible commercial paper) program at its expiry in the first quarter, 2008.

The sale of the brand and distribution business is subject to approval at a RAMS shareholder meeting planned for late November.

Westpac said the combination of funding and the agreement on the franchise distribution business for cash, made it attractive to RAMS shareholders.

"The RAMS franchise model has proven to be successful and this transaction will allow it to continue," Mr Morgan said.

RAMS, which listed in July, was a victim of the US sub-prime mortgage crisis that has afflicted global equity markets.

While the non-bank lender had no direct link to the troubled sub-prime sector, it revealed in August that exposure to volatile international credit markets would affect its financial performance in 2008.

It said last month that debt market turbulence could undermine its forecast $58.6 million net profit in fiscal 2008, compared to a 2006/07 pro-forma net profit of $43.5 million.

The 2007 result was up 49 per cent on the previous year and was consistent with prospectus forecast.

As a result of the transaction with Westpac, RAMS will remain a listed entity, continuing to service and amortise its existing loan book and all new business settled up to and including November 15, 2007.

RAMS chief executive officer Greg Kolivos will be retained by Westpac to oversee the transition, and said that existing staff would either move to Westpac with the sale or be retained by the company.

RAMS said that, apart from the change of name, there would be no changes for existing customers arising from the restructuring.

 

[adobee]

Re: RHG - Rams Home Loans

Rams is down substanially on this news 18% .. what do people think the effect will be .. I might buy some

 

[bigdog]

Re: RHG - Rams Home Loans

Rams is down substanially on this news 18% .. what do people think the effect will be .. I might buy some

I would jump ship!

Rams is not looking great.

RHG 0.71 -0.140 -16.47% from high of 0.905 and low of 0.66 47,566,220 36,523,916 02-Oct 11:07:22 AM

 

[tsunami227]

Re: RHG - Rams Home Loans

a bit too late now for me..

ha ha .. and i thought Rams gonna go up in the morning when i saw people bidding at 1.1 dollar for its shares..

sigh... luckily i didnt put too much of money in Rams..

C' mon.. go to 0.8 so i can sell

 

[ROE]

Re: RHG - Rams Home Loans

looks like Westpac took all the good bits and left RHG with a pile of debt
lot of unhappy shareholders who bought in the float

 

[MannyB]

Re: RHG - Rams Home Loans

Don't forget its still not a done deal, shareholders need to vote for the Westpac sale to proceed & also, the ASX announcement does stated that the board recommend the sale "subject to a better offer", so hopefully for us that hold RHG shares, other offers do come on the table & create some form of bidding war... I think $140mil is far too cheap to sell the franchise network & the actual name... What is left then? $14billion of loans on the books, but with an unknown name, would they retain their loan book? or would it be chewed up by Westpac? Too risky, I hope we get to vote, as I'll be definately voting against this...

Cheers,

Manny.

 

[adobee]

Re: RHG - Rams Home Loans

What always confuses me is if 100 million shares have traded there must be 100million worth of sells who think this is now a dog and 100 million who think that it is worth getting on..

If shareholders dont vote in favour I would expect an easy recovery to its current position..

 

[SevenFX]

Re: RHG - Rams Home Loans

other offers do come on the table & create some form of bidding war...

Are there any other offers on the table or is this the only one since rhs announced their position...???

They are knee deep in ****, and with the US Housing & Market downturn looming, shareholders may opt to take what they can get.... IMO

 

[brilliantmichael]

Re: RHG - Rams Home Loans

What always confuses me is if 100 million shares have traded there must be 100million worth of sells who think this is now a dog and 100 million who think that it is worth getting on..

Either that or there's a lot more than a 100 million people (day traders) trying to pick a bottom/impulsively buying and then selling the next minute! :

Lesson: Don't be contrarian for contrarian's sake and perceive it as "value" - or if you're going to arbitrate intraday/week, diversify, keep your eye on the exit, and minimize risk. Personally if I didn't know a thing about the business and I wanted to speculate anyway (BHP, RIO, CSL come to mind), I'd be watching the news about it and betting on an uptrend - not a downtrend.

On a serious and more sombre note though how can RAMS be RAMS without the RAMS brandname? It would be just a hollow shell of its former self, and still laid down with debt.

 

[blaze87]

Re: RHG - Rams Home Loans

ahem..
i do not really understand.. what are the options that a shareholder such as myself can do at this point of time?
what are the possible consquences and implications??

 

[ROE]

Re: RHG - Rams Home Loans

I think Westpac is getting a bargain for it and if I was holding the shares
I would votes against it.

I said RAMS worth very little once Westpac stripped out the component they want to acquire.

How can it be in shareholder interest when people buy them at float of $2.50
some at $1.00 or $1.50 and now they are selling it for 50cents to Westpac ?

With brand name gone how can they called themselves RAMS?
they may call it sheep skin

 

[blaze87]

Re: RHG - Rams Home Loans

i think if the deal goes thru,
the next important question is
what is the net present value (NPV) of it's exsisting loan book?
will that amount justify . (ie a price of $0.60) keeping in mind that future growth capabilites is 0

quote from annoucement'
“The RHG board unanimously believes that in the absence of a superior offer, the Westpac offer represents the best outcome for RHG shareholders,”

does the above statements implies that RAMS is in deeper S*** than current investors' concsenus?

and finally..
IF the deal doesn't go thru, what are the chances that RAMS might just close shop and shareholders losing everything they invested in the first place?

 

[blaze87]

Re: RHG - Rams Home Loans

at the point of time, i cannot believe that RAMS is in such a debacle...
i reckon management is astute
RAMS has a leading brand name and has been going on for 12 years...

how did it get so messed up so badly, simply beacuse it cannot finance it's current US XCP liabilities.....
Is this fear...??

im looking foward to the Explanatory Memorandum, and pray that my judgement is not wrong..