I have had enough!!!
Reporting season is about to start. ... And the CEO decides to leave the ship.
There seems to be no (!) succession planning at all.
His contract runs out 1st September, but he has to take leave before 1st September.
No reasons were given, not even the platitude of "needing more time with the family". Tellingly, I think, the board announcement says that Mr. McWilliam is "proud of all that has been achieved". What??? The chart below speaks of what has been achieved over the last 5 years.
I, for one, expect disappointing numbers for the upcoming AR, on the grounds that the now outgoing CEO would have presented the report. I also suspect some disagreement between board and management, I believe this sort of situation was foreshadowed by the departure by the CFO last year.
Looking at the financials for 2nd half last year, the trend is not the investor's friend: NPAT down on pcp, ROE down on pcp, dividends down on pcp. To turn this ship around, RMC would need to produce significantly better numbers to show a turnaround. But the CEO resigns, and an interim is in place now.
Over the last three years, RMC has not been what it should be: a fast growing, low cost, swift response, provider of home loans. ... and Mr market values it as that.
I posted previously a negative opinion, but got swayed (by one poster) saying this stock is largely dependent on the interest rate outlook. And yes, that is somewhat true in general. Not only today the broader market is up, on the notion of lower interest rates from the US, but RMC largely unmoved.
This stock has its own problems. I am also sceptical that RMC can hold its current dividend level - so dividend yield is not a valid argument for me. You have to wonder what Somers (the major shareholder with 63%) is thinking about the employment of their money.
Consequently, I have sold out (to someone more optimistic than me).
Enough rambling. All the best to all the shareholders
As an afterthought, I had a look how RMC would have compared SP - wise with CBA over the last 10 years:
RMC had its place in the sun, but now I have doubt that it can come back to its former glory given what has happened in the meantime.
(20min delay)