massive increase in volume, page-10

Ok have done a quick analysis

MC about $40 mill now

Full year profit forecast in Nov 07 was 424 mill then cut to $17 mill

Full year profit has again been cut now to $10 mill

This doesn't include a $5 mill cost of overuns or income versus costs for dud purchasers.....which seem to be the chairmans doing due to the fact hes resigned from the position.

65% of staff been there less than 12 months is a concern.

means you have the good staff training puppets instead of on the phones doing the groundwork and recovery requirements which again can lead to costs blowouts and a big reduction in revenue coming in to cover any dud purchasers.

Do these guys buy such things as loanbooks from overseas F institutions.....Im leading to US banks with defunct borrowers........You wouldnt be buying these in a hurry.......maybe C Corp dont deal in this area.....not sure.

So you have 10 mill coming in.....perhaps $5 mill to get the boat back on track.......leaves 5 mill......then lets assume another coupla mill to get in some decent staff and management.

Hmmmm........looks in real trouble to me

The forward flow agreement in relation to personal loans from a tier one bank on 180 day overdue P loans have to be the highest risk type of recovery debts there are.

Unsecured no doubt.......not an easy task and plenty of call costs and manpower chasing.

I bet telstra love credit corp.

Until they can prove direction and get rid of the dud deals and get in the experienced staff and management.....

I think the best thing is for someone to take them out......or at very least wipe the board.....get rid of the dud deals even if it means tearing up more losses short term.......new board.....new team.......the experienced memebers need to be kept to fulfill the recovery duties and not less than 12 month old personell.....

They have got the big hitters/recovery experts training the girls and guys who have been there 5 minutes.

They need to get aligned with perhaps a HR/recruitment org that specialises in credit recovery.

The best guys have to be the ones one the phones crucnching the deals......simple as that.

Management taken their hands off the puilse......and the company suffers.

My buy in price 60-70c

Should be well over $1.50.......but no hope until the company makes wholesale changes from board level down.

And noticed Mr Rix lft out the back door.....hmmmm.


How about a takeover ........anyone else out there that could tackle the task??? Just a thought.