short term bottom

With tax loss selling out of the way & the real possibility of a surprise in their next P & L. report RHG could well bounce off their current 5.1 cents level. Assuming debt facilities can be rolled over successfully, RHG can still made a profit on the margins, it is currently lending money without any new loans. Penalties on early payouts also benefit RHG in not only creating additional profit but also in reducing the total loan book required. If RHG were to get in trouble rolling over a debt facility I think one of the major banks could buy more of their mortgage book because the government is not about to see thousands of house loan borrowers placed in a situation of having their mortgages withdrawn. So in a real crisis political forces could ensure RHG continues a orderly book run off of its debt.
It is an extremely speculative beast but could give good percentage gains off 5.1 cents even in the short term.
Regards
Buffett