regrettable sale, page-4

I agree that subprime version two is a risk. It is a small but real risk.

Being associated with an RHG loanbook could also be a relevant factor in determining the price that one would pay for it.

Given the above problems, we need to consider the price we are paying. It will earn around 10 cents in 2H2011. I think the loan book cashflows have declined at over 10% per half, year on year. 2nd half of the year is always less profitable than 1st half. This decline will probably accelerate going forward.

So, I would happily pay 30 cents for the loanbook.

Now, I wish to add it to net assets of 40 cents. So I get around 70 cents.

Could there be an issue around simply adding the loan book proceeds to net assets?


I agree that many people who are in the stock, are only in it for the 45 day franking credit rules.

I also agree that we should see a bit of a rally in the SP after the FY11 results are released.

I would also like more informed opinions.