accumulation, page-18

there are some very ill informed people on here.

1. break fees mean income now to RHG, but loss of future income- which is fine if the margins have been decreased because of higher refinancing costs- they don't want those customers, but means RHG shrinks in the future...depends what RHG does with that income to create future value

2. Loss of customers does affect the future income, but then with westpac coming on board that helps at approx 40c per share value. Merryl lynch still value at 69c...

3. RHG is a takeover target from a big bank or financial comeptitor with it trading at well under valaution, as soon as someone big owns it then the customers will stay and they just garnered some 50,000+ customers....nice customer aquistion strategy and for a cheap price. remember the party aquiring will be able to offer their rate....not what RHG has to pay.
That bank can refinance all the RHG customers and offer them the option to break (income) or take a new contract out with big boy security...man that is cheap aqusition cost per customer isn' t it!!
123M market cap (that's less than 2,200 per customer and broker fees for getting a new customer are $3,000).


so tell me again why not to buy RHG????