Forum Archive Index - April 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

ahf - I would think that GPG wouldn't read past the headlines when it came to RMG.

 

Look at the chart - since the stags got their rewards when the price was in the mid to high 30's a strong downward trend. Once a trend like this starts very hard to arrest. .

 

Performance, sentiment or whatever easy to see price down nearer 10 cents by the end of the year.

 

Read that post by Gerry the other day on the Collection House (ASX) chart?

 

Very poetic in the way the steady increase in Collection House's share price was described.

 

Gerry could have been describing a stairway to heaven  -  take a look at the RMG chart and in the same context a down escalator to nowhere.

 

I see Collection House have just acquired another company to add to their bow - and to RMG's worries in Australia.

 

Read the announcement - doesn't it inspire confidence in Collection House's future, when comapred to RMG's announcements of late.

 

ahf - if you think RMG a good bet keep with it. Don't let me persuade you otherwise.

 

The Collection House announcement

 

COLLECTION HOUSE LIMITED                      2001-04-03  ASX-SIGNAL-GHOMEX -
Brisbane                                                     
+++++++++++++++++++++++++Collection House Limited today announced the
acquisition of NationalRevenue Corporation Pty Ltd ("NRC"), a
Brisbane-based companyoperating nationally and specialising in commercial debt
recoverysystems.John Pearce, Managing Director and Chief Executive Officer, said
thisacquisition complements Collection House Limited's existing portfolioof
services and will enable Collection House Limited to providecredit management
solutions to additional sectors of the businesscommunity."The NRC product
is an innovative credit management solution aimed atsmall to medium-sized
businesses as well as the sophisticatedcommercial credit manager."Developed
in the USA, the Tandem Programme has over 28 years ofglobal application and,
through NRC, has been serving the needs ofAustralian creditors since 1996.
"High margins and the successful introduction of NRC's outstandingproduct
in Australia will be further enhanced by the strength ofCollection House's
infrastructure and its business developmentprogramme. Collection House's network
of offices, staff and marketingcapabilities will augment the fast-tracking of
the NRC productAustralasia-wide by adding to the credibility of this credit
management tool."Following the $33.25 million placement of shares in March
this yearwhich boosted the total share issue to 94.60 million, John Pearcesaid
that the company was concentrating on selective acquisitionsthat were conducive
to its positioning in the marketplace."A fundamental premise to any
acquisition by Collection House, asidefrom financial performance and product, is
the ability for staff andIT systems to integrate smoothly into our existing
infrastructure."NRC's collection software system is The Controller, the
proprietarysoftware system used by Collection House Limited and developed by its
subsidiary company, Collection House Technologies Pty Ltd."The use of our
software value-adds to the acquisition of NRC. Notonly does it aid the
assimilation process and reduce associatedintegration costs, more importantly,
it allows us the ability totrack performance immediately. Both shareholders and
clients benefit.Furthermore, by reducing the period usually needed to 'bed-down'
acquisitions, the integrity of the revenues to date for CollectionHouse are
protected."Collection House Limited's share price this week reached its
tradinghigh of $4.10.