share price - jump , page-12

Lawsuit was settled over four months ago.

Would like to see some evidence of these higher capital ratios the funders are requring that you mention?? If that is correct, the company has still had cash available to buy back approx. 50 million shares over the past two years at a significant discount.

Book value for this business is cash, not goodwill or plant and equipment. Therefore the only argument on the book value figure is provision for bad loans which is a low risk from my point of view as no new loan has been written for over 3 years so the mortgages still held by RHG were originated well before the "bubble" in Australian property was created over the past 3 years and therefore the mortages held have a long history with RHG (and therefore a reliable bad debt provision should be able to be forecast on a reducing mortgage base). Unemployment is also at a very low rate in Australia presently so should be no increase in bad loan risk for this business. Also all loans are non-recourse.

I personally hope that they continue on with the business of writing mortages from November this year as they have the systems to do so and are good at it, provided their sources of funding are secure.

I'll continue to build my position gradually and wait for the market to wake up when full year results are released in August and tax refund announced in the near future for $21m.

A company with this type of profit at this price is a rare thing when you research most of the listed companies. The directors of RHG have had some bad publicity and yes have perhaps reacted poorly at times, however I think the way they have handled this business the past 2 years has been very good.

As each day ticks over the value builds.