RMG and Stiassny's reputation

[biker]

How much faith do you put in a chairman's comments that go with a half year result? If true, the shareprice should be ready for a run.If not, then a substantial reputation is heading for the gurgler.
With some Companies I invest in the people.RMG with Stiassny and Logan is one of them.Hope it's not misguided!:)

[Paddie]

Biker,
Stiassny is the main reason why i am still holding on to my Spectrum shares. Like you, I tend to have a bit of faith in his abilities.

Paddie[^]

[willy_wonker]

Isnt the full year result due in August?

Thats a long way away to have sleepless nights.

[Lawso]

Me too. RMG and SPE are the only real dogs in my portfolio and MS is a director of both. So I hang in there - in hope and faith and because I couldn't possibly sell at these prices. Biker & Paddie: I'm sorry but it makes me feel a little better knowing there are other posters in the same boat.

[willy_wonker]

Lawso, we all have our dogs in the portfolio.

At least those dogs are a good tax lost. Better we claim than the government getting it.

[biker]

SPE
25/05/2004
DIRECTOR

REL: 1159 HRS Spectrum Resources Limited

DIRECTOR: SPE: Director Resignation

Michael Stiassny has resigned as a director from Spectrum Resources Limited.
End CA:00100561 For:SPE Type:DIRECTOR Time:2004-05-25:11:59:37

[whatsup]

Calling RAWDATA can you give us your considered views on MS and the influence that he has/can exert on the future of RMG or is it in such a hopeless mess/case that its already in the garbage bin?

[rawdata]

You wouldn't call an undertaker to cure a person who can be healed. MS is a corporate undertaker with a brief usually to act in the best interests of the banks.

RMG is sick and to be healed, it needs some serious capital injection - look at the numbers and you know that this company is running out of cash and equity fast. So what can MS do?

MS leaving Spectrum is, to me, telling. A director leaves a company after having done a job or after failing to do a job. In this case, is it a case oh him leaving so that he can keep his reputation intact?

[whatsup]

Thanks RAWDATA as usual concise to the point data.

[willy_wonker]

Would you let your accountant run your business?

[KJ]

Isn't Ron Brierley an accountant?

[whatsup]

After todays ann who would be game to buy at these prices .025? RD is this a dead cat bounce or just a dead cat?

[willy_wonker]

WHAT A F**KEN DOG


RMG
27/05/2004
FORECAST

REL: 1141 HRS RMG Limited

FORECAST: RMG: Media Statement

RMG today advised the market that the company will not meet its profit
expectations for the year.

This is disappointing as the management and staff are achieving improvements
in performance. Unfortunately results continue to fall well below the
expected lift in performance to 30 June 2004.

RMG also advises that the company is in negotiations to secure the purchaseand funding of a contract which if concluded will significantly mitigate the
downgrade.

For further information:
Ron Logan, Managing Director
Tel: +61 3 9320-0103
End CA:00100667 For:RMG Type:FORECAST Time:2004-05-27:11:41:47

[willy_wonker]

Where to from here for RMG?
Cant raise more funds and cant make a profit !
What a complete DOG!


disc: Not a shareholder of RMG.

[willy_wonker]

Why are people paying for RMGOB when they can get the RMG at a 20% cheaper?

*scratch head*

[whatsup]

Someone are thinking there is value today in RMG heads only :may be averaging down?

[donnie]

This is in the SMH paper today

Debt collectors still struggling to make a go of it
By Anthony Hughes
May 31, 2004

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Hopes that Australia's debt collection industry might have resolved its woes of recent years have been dashed, with Melbourne-based RMG suffering deteriorating finances and D&B Australia again delaying its planned stockmarket float.

After being asked by the Australian Stock Exchange to clarify an earlier profit warning, RMG said its operating profit for the year to June 30 would be about $500,000.

Though RMG did not comment or detail the reasons for its woes, its bottom-line result is expected to be another net loss.

While RMG's shares have slipped to just 2.3c, it said it was trading at a monthly operating profit and its financial condition was "sufficient to warrant continued quotation of its securities". It was also hoping to finalise "the purchase and funding" of an undisclosed contract that would "mitigate the downgrade".

RMG and D&B have been working for National Australia Bank in the past year collecting more intractable consumer credit card debts, personal loans and mortgages.

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The appointment of the two agencies followed a decision to move away from a panel of 13 agencies last year but NAB is thought to be one of the better banks at collecting debts, making the outsourced debts difficult to make money on.

RMG has also purchased portfolios of older debts that NAB has agreed to sell for a large discount to face value.

Sources say that D&B has now walked away from the NAB contingency collections contract after one year, reflecting concerns that the performance guarantees required were too high to make them profitable.

D&B's chief executive, Christine Christian, would not comment on the contract, while NAB said it did not comment on commercial arrangements.

But Ms Christian confirmed another delay of its ASX float to the first half of 2006, having previously shifted the timing from this year to 2005.

D&B, 77.5 per cent owned by AMP Capital Investors following a management buyout of the local operations of Dun & Bradstreet, was doing well, she said.

"We are very pleased that we have made in hindsight the conscious decision not to move into the ledger acquisition area," she said.

"It's given us the opportunity to build our capability in contingency work . . . We are outperforming every benchmark where there is a panel arrangement in place," she said.

She said the float delay was due to the group's investment in a new consumer bureau with Macquarie Bank as a co-investor, taking on the industry leader Baycorp Advantage.

D&B is best known for its commercial credit bureau, providing credit checks on small and medium-sized businesses.

"It would not have made sense to list any earlier," she said.

The share prices of some listed debt collectors have been recovering in the past six months on hopes that they had overcome overpaying for debt ledgers and agency contracts.

Baycorp, for instance, changed management, wrote off losses on its merger with Data Advantage and wound back its debt acquisitions

[willy_wonker]

RMG management forecast profit from $5 million downgrade to $3 million and now they are saying $500k only? Will you ever believe RMG management again? Misleading the market to line their own pockets?

Assuming you believe management and RMG can meet their forecast of $500k, at the current market cap of$20 million, the stock is trading at a PE 40x.

Wow, and I thought the tech days were over.

[Happy]

Personally I don't think that much of Stiassny's reputation. He has made his name essentially as a receiver and liquidator - of course great skills to run a company, but a smart guy nonetheless

[rawdata]

quote:Originally posted by willy_wonker

RMG management forecast profit from $5 million downgrade to $3 million and now they are saying $500k only? Will you ever believe RMG management again? Misleading the market to line their own pockets?

Assuming you believe management and RMG can meet their forecast of $500k, at the current market cap of$20 million, the stock is trading at a PE 40x.

Wow, and I thought the tech days were over.



It's not profit the company is forecasting - it's EBITDA (Earnings Before I Totally Duped Auditor!). So there's no PER to calculate - in fact it's likely that the company is already only surviving with the agreement of the banks.

Those who are buying either know something that the market does not, or are complete fools.

[willy_wonker]

Rawdata, it seems more likely the insiders are covering their short positions in RMG.

[thereslifeafter87]

If you were to go short in RMG now, and it ended up bankrupt, do you make money? I have never engaged in short selling, so I was wondering if a company actually goes into receivership/trading halt is a short seller required to cover their position? or do they just keep all the money?

[SEC]

Yes you would get to keep all the money. However you'll be lucky to find a broker who'll offer you RMG to short.

SEC

[rawdata]

quote:Originally posted by rawdata

You wouldn't call an undertaker to cure a person who can be healed. MS is a corporate undertaker with a brief usually to act in the best interests of the banks.

RMG is sick and to be healed, it needs some serious capital injection - look at the numbers and you know that this company is running out of cash and equity fast. So what can MS do?

MS leaving Spectrum is, to me, telling. A director leaves a company after having done a job or after failing to do a job. In this case, is it a case oh him leaving so that he can keep his reputation intact?


And MS has just resigned from RMG .....RIP......

[willy_wonker]

The sad thing about companies like this is that the promoters laugh all the way to the bank and again, the minority shareholders are the ones loosing their shirts.

Hope we all remember their names and not invest in their next ventures.

[whatsup]

W/W for the record please post all those parties who have done so (incorrect spelling only). On another track I see good friend Rolly Polly (Oli) is back to his old tricks Writing about property!!!

[willy_wonker]

Whatsup, better to read the annual report. I am sure we know who they are, especially if you are a RMG shareholder.

Where willk the next cash injection come from to keep this company afloat?

[Lawso]

So, MS now out of both of the only dogs in my kennel - SPE and RMG. Had been holding on hoping he or someone could breathe some life into them. Can only conclude that he has written off both as terminally ill. So do I sell out for a pittance or hang on and keep hoping? The latter, I think.

[willy_wonker]

Why are people buying RMG?
Noticed a good size turnover yesterday. Either insider knowledge or a bunch of old boys still crying wolf for a bunch of village clowns.

[Paddie]

Lawso,
Fortunately I am only into SPE, but I think it is time to cut and run.
There have been no announcements from the company for new business for months. Their result was so bad that despite expectations there was not even a comment on this site.
If they are not announcing new sales, how are they growing.
The cash is burning I suspect.


Paddie

[Lawso]

I've got 100k SPEs, Paddie, + 5560 worthless options. If I found someone silly enough to buy them @ 1.2c, I'd get $1200 less brokerage. Seems hardly worthwhile, but as you say there's no sign that SPE is making any headway with its software. Sales virtually static at $1.4m for the December half. :(

[Paddie]

I know what you mean,

We wait and hope that they will at some stage give us a good return.
Truth is I should have sold and for eg put the money into either GPG or Tower which I own (or many others), and I would have done considerably better.

Regards
Paddie[:p][:p][^]

[zyreon]

just been doin a little due dilligence on this (RMG) and yikes, looks like its a stones throw from insolvency.

I'm guessing the volume is from people who are BETTING (I.E. GAMBLING) [I.E. DREAMING] for a turnaround.
THere is an enticeing yet unlikely potential for large gains (due to it being a penny stock) but I fail to see any compelling real or imaginary reason other than the aforementioned to take a play on this one...

[Lawso]

After wading through all the half-baked garbage on Iraq, US economy, Safehaven etc by various ST ravers, it's always a pleasure to read something sensible and relevant from posters like zyreon.

[David Renwick]

Yes it probably "looked" cheap at $0.10 after diving from $0.37. (catching falling knives.)
I guess MS didn't want to be associated with yet another dead duck in spite of his receiver or fix-it roles.

Zyreon - were you able to determine what its NTAs are - assuming of course that someone wants to buy them. TIA.

[zyreon]

well going from the Hlfyr financial position:($000) [As at 31 December 2003]
Working capital (current A-L)
5662-15248=(9586)
Net Assets (total A-L)
27669-25190=2479
as far as tangible assets go, the plant property and equipment is worth 4967 of total assets...

Net assets per share:
based on NZX sourced info (755,255,268)
2479000/755255268=$0.003282

Of course that info is from about 5 months ago, so I have no idea what the current figure is...

[winner69]

A bundle of options due in six months or so ... at 3 cents

So expect a flurry of 'good' announcements by rhen as a last ditch effort to get these in the money

[winner69]

Zyreon - some might say that the the $16M of purchased debt on the balance sheet is 'tangible'

Ooops - forgot that they only count what they collect in their operating profit (EBITDA) calcs. The cost of the ledgers (like anybody elses raw material or stock) is forgotten all about cos it is counted as amortisation.

[David Renwick]

Well it doesn't look flash eh. I hope that they've conservatively written down the value of these debtors ledgers and they have a bldg or some decent I.T. gear to flog off.
Thanks for that work Zyreon.
Zilch held.

[willy_wonker]

The only thing this company is of any value is a shell and thats only worth $1 million. Even shell companies are not worth anything these days.

RMG needs alot of cash and a CEO with vision to turn it around. And it has non of both.

Hey, lets be careful out there.

[garryw]

When this thing floated a few years back it was to ride on the promise of others already entrenched in the market (What a great business model). RMG had a great effect on them too, in relation to share price erosion. Eric got his money, you guy's got ripped.

There are only a couple of serious players in this game and RMG aint one of them.

[zyreon]

lots of volume today (...not that it's worth much)
wonder whether it's insiders or fools buying...

[maybe it's the management buying to try and up the price a little so that, as winner69 suggests, the options finish up in the money so that they get exercised and company gets turned around etc...]

anyway this is currently my dog of choice
[spent some of my "who cares" money on a few options... speculating on covert/overt activities come option exercise date.....]

[lambton]

It's been a long time coming but after this resignation I'm sucked into putting my little pennies worth.
It seems to me this person has joined the dark side or was always there - no surprise, just a smarter pig than most slopping at the trough. But then you wouldn't have to be a particularly smart pig to rip deals to your advantange in little ol NZ - oops nearly said NZX
My only wish "If only this little piggy would read this site" but then happy full bellied pigs have little ambition to seek enlightment.

Have not nor have I ever owned this cra*ppy stock.

[maxine]

Lambton...I agree with you, for what that is worth.