credit mkts recovering as per target, page-24

FN ARENA NEWS - 21/09/2007

"Analysts at BNP Paribas warned their clientele earlier this week the next Northern Rock could well come from Australia. This opposes the general view among local experts that Australian banks are well protected without having too much of an exposure to US housing markets in the first place.

But what about the local non-bank lenders?

Wilson HTM analyst Andrew Hills has reportedly issued a report on RAMS (RHG) this week suggesting the shares are currently only worth about $0.90 (this amounts to about 10 times 2009 forecast earnings per share) given the many uncertainties. But what has caught the attention of investors is that Hills has calculated RAMS will simply run out of cash by December of it cannot find cheaper access to funding.

Investors are largely ignoring Hills' warning today with the shares surging more than 5% to $0.80 in an overall weaker share market.

The shares hit a low of $0.55 earlier this month. RAMS listed in August at $2.50 a share."