Thursday, September 27, 2007

RAMS we wrote this on Monday 240907

We wrote about this early in the week and our view was supported by
others and a SMH article.
RAMS - Hi there, all you Rams! (Are you all Aries?)
One of the ways to earn credibility (or not) in the game of investing
is to make correct predictions.
You haven't asked, but here is a freebie anyway.
If you were going to invest $1,000.00, you could consider buying 1000 shares in RAMS HOME LOANS-
Now let me tell you why before you throw your hands up in the air..and quote sub prime mortgage losses etc.
RAMS floated on the 25.7.07 at $2.50. Then the poor things were hit with the 11% asx decline Aug 16th, as a result of the sub prime losses in the USA.
ON MY RESEARCH it wasn't just the unpaid mortgages that broke the lenders backs.. it was caused by borrowers being signed up to higher than average interest rates, PLUS then cashing in the equity on the homes for luxury goods. Cars and boats littered the driveways.
The lenders convinced poorer borrowers to "buy" their loans at higher rates (some up to 13% when in fact the going rate at the banks was about 7.5% -8%) Some of these people may have been accepted by a bank at a lower price and the lenders knew this.
In my view, it was Predatory Lending.
NOW HERE in Australia, the potential sub prime losses are approx ONLY 0.0025% or 25% of 1 per cent of borrowers. So the risk is pretty small, and even if RAMS went broke, one of the big banks would quickly buy them out.. which could be a good thing if you owned their shares at the current price of $1.04 - (at time of writing.) way below the float price.
They have dropped as low as .67 cents but are now rising. Mega Rule 3. - BUY a rising stock.
When you look at the stock price of other home lenders - RAMS competition- you can see the potential.
St George is currently at $34.54 and Bendigo bank is $13.62. RAMS is probably more high profile than both of these, and due to their advertising, RAMS are well known.
When you look at their announcements you will see they have been trading well within their forecasts. Buy now and you could make at least 100% IN 6 MONTHS, maybe even days at this rate.
The price has risen from 0.75cents on the 18.9.07 to 0.97 cents today.
Thats about 32% rise in 5 days. PSSS Rams announced a 250Mill Bond issue 26.9.07. Shareholders can buy these and earn interest. go to their announcement on asx and read all about it. If you don't understand it, go to asx- education.. sign in and learn. It's well explained and straight forward.
Don't forget to read our disclaimer .
Remember, we (SMS) are not financial advisers, we (SMS) are Educators and publishers only.
So ask around. Investigate yourself. Mega Rule 4 - Do your homework!
Buy on the internet..try Westpac or Commsec banking, so you don't pay high % fees.
Don't get ripped off.
Make your own decisions and know yourself.
If you fret over losing a dollar, don't invest in anything.
Your attitude to risk could be injurious to your health.
Go Buy a new pair of shoes, a new dress or a box of chocolates instead.
kind regards,
(Please forward this to a friend. They might appreciate the help.
We're searching for even cheaper shares and even higher profits.
Now is the time to buy and hold)

We (SMS & assoc) are not Financial advisors and are NOT providing you with financial advice. It is eduactional guidance only. The information on this page does not take into account your objectives, financial situation or needs.Consequently, you should consider the information in light of your OWN financial situation and needs before making any decision to invest. Take charge of your life and do your own research. We can show you where to look. We teach HOW TO look! find out more on www Megamoneybox. com

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We are not financial advisors. We are asset management Risk consultants. We try to help you to make sense of the sharemarket minefield. You MUST take your own risks and make your own decisions. Therefore you must do your own research. Any comments shown are not those of the owners of Megamoneybox or subsidiary companies.