52 week high what credit crisis, page-21

The NTA was 44 cents at the last report, but the company has approx $9 billion in loans in run-off. It earns a margin of over 200 basis points on those loans (based on the last half-year report). That equates to revenue of around $180 million per annum (or 50 cents per share), although this will decline over time as the loan book runs off. RHG also receives pre-payment penalties for loans that are repaid early. Against that, it as to pay some trailing broker commissions and outsourced mortgage servicing costs.

The value depends on how fast the loan book runs off, but is potentially up to $1.50 per share. At 30 June 2009, NTA per share will probably be up between 60-70 cents. Despite the run-up this is still a fantastic buy IMO.

DYOR