Relax Grp Share Discussion Threads

[poggy pig] 17/3/2009 23:47

Chart still looking good to me.

[billybigguns] 17/3/2009 23:34

alexacj - 17 Mar'09 - 12:35 - 83 of 87
As expected...a great set of results from FRP.......all indicators now point to strong demand for Debt co products......

IT did their share price some good! LOL

So much for these debt companies 'bucking the trend' in the downturn. They are all a million miles lower from where they were on placement.

[dickdanbayne] 17/3/2009 17:44

Hi Guys

As far as I know they are not lending there own money, I use to work for the company about 18 months ago and basically they lent money via consolidation lending companies such as Firstplus, Picture, GE Money & nemo as well as a few others I cant remember. Of course that was before they bought out Relax which from my understanding use to use the same money lenders.
Im not invested as fully invested else where but am watchin and might dip my toe in the near future.. Good luck aimho

[alexacj] 17/3/2009 15:32

I agree Billy!!! 20p would put this stock on a confirmed PE of 2 !!!! If we get back down there I'll be adding big time!! Currently we're on a PE of 5!! Not what I would call demanding.....sometimes the MMs can be your best friends if you're patient!! The chairman who bought at £1 a share a couple of weeks ago seems pretty confident ( he paid a 25% premium to the market price!!)....seems there is little or no stock around....but with the markets turning lower it is a prime excuse for the MMs to drop the price and flush out sellers....pretty good business.....sell 50000 shares at a pound a share and buy them back at (currently mid 60s) a price 30+% lower!! The S&P is very low on the curve.....my guess is we'll rally.......then fall to retest or form new lows then move off to the upside........great opportunity to buy the dips that affect those cheap stocks that are prospering and will prosper further in the current economic climate!! AIMHO!! Good luck!!

[billybigguns] 17/3/2009 14:42

Back to 20p - Worth a punt then.

[alexacj] 17/3/2009 12:35

As expected...a great set of results from FRP.......all indicators now point to strong demand for Debt co products......

[alexacj] 10/3/2009 17:43

Hi Hoff....I think we have already discussed their lending division a few posts back if I recall correctly. They are NOT in to doorstep lending but would have thought that it may not be a bad idea looking at Provident Financial's results. As we discussed before they are not lenders of last resort but I would think that their client base is perhaps similar across both divisions i.e. loans and debt management! Billy I think that Relax will undoubtably see a few of their customers transfer from a loan customer to a debt management customer in todays environment.....however, not seeing the figures, my guess would be that it is not in their interest for this to happen....they have enough customers banging on their doors compliments of Mr Brown's fiscal policies.......I dont think they need to create home grown ones!!

[hoffbear] 10/3/2009 09:55

Has Relax got a direct lending division then alexacj?? I wasn't aware they had, have I missed the announcement?

If so, is it 'doorstep' lending they are venturing into? A dangerous situation to be in if they are lending with the 1st knock of a door, then debt collecting with a 2nd knock?

Please clarify.

Thanks.

[alexacj] 03/3/2009 13:01

Provident Financial have bucked the trend.....their credit card division which focus's on issuing cards to individuals who have a poor credit record has made its first ever profit of £8 million (CLEA has also entered this market so should be interesting for them!!)....the door step lending appears to be growing profitably......maybe just maybe we have a very real winner in Relax....not only the debt part of the business but the lending side may also be about to produce growth...lets see!! It may not be the "worry" that some think it is.....if the finance part of RLX follows Provident Financial then we are in for some impressive share price rises !! AIMHO!!

[alexacj] 27/2/2009 09:09

Didn't take any offence at all!! The CAB has been around for ages "helping" with consumer debt issues.....I always read the CAB reports on this topic as an indicator to what is happening with consumers in general......there is no way that the CAB could handle every enquiry for every debt related problem.....if they did then there would be no need for any other debt advisory service.......in fact if you take that one step further there would be no need for solicitors... as the CAB also provide legal advice.....if the CAB are seeing debt related enquiries rise dramatically and expect that trend to continue.....then I would also expect the very same trend to manifest itself with the levels of business RLX are seeing and will witness in the future.Commercial debt co's also have the ability to "seek" customers ...i.e. the possible tie up with finance co's.......therefore you could argue that if you take the CAB report at face value then there will be an awful lot more people requiring IVAs or DMPs that will probably orginate as a customer of a finance company......I could therefore see the potential for RLX (and the other commercial debt co's) with "clever" marketing/tie ups to see enquiry level growth well beyond those that the CAB are witnessing!! AIMHO! Keep the balanced views coming.....they are important for meaningful debate!

[hoffbear] 26/2/2009 21:18

I agree to some extent alexacj, however to balance the arguement - look at who is making the comments in that article - CAB. Don't they refer all of their business into 'Payplan' - a non charging debt management company?

I am just trying to present a 'balanced discussion' here so that we can all invest with a sense of realism.

Not trying to be awkward or offending.

[alexacj] 26/2/2009 11:55

Interesting article....Looks like the debt co's are going to go from strength to strength for years to come!!!

[alexacj] 25/2/2009 12:46

They currently have a loan business which was still lending £3 million a month after the banking crisis broke....to be honest the group is small and now that they have rationalised the offices staff can be utilised on either side of the business....the loan business will also provide income for debt management and IVA fees.....if you think laterally enough it might prove "fruitfull" for the group to link up with all those "big" loan providers such as loans.co.uk and utilise their customer base as potential IVA/Debt management income.....would also think a link to HFC bank would work.....they seem to lend to all those sofa co's......maybe that is just the "exciting news" that was hinted at in the AGM update!! Either way....we are on target to exceed current estimates.....the economic environment is getting worse by the day....the p/e ratio is a ludicrously cheap p/e of 5.... and the chairman has just bought a chunk of shares at a a 25% premium to the market value on the day!!

[hoffbear] 25/2/2009 12:36

retrace I think in the short term - good potential moving forward in DM & IVA business. Any news on whether or not they still have their mortgage / secured loan division? A previous poster mentioned that this would be a drain on resource as there is no business for this area currently. Have they rectified this issue?

[alexacj] 24/2/2009 09:14

I thought he was the non exec chairman!! Either way....he's on the board and bought a lump of shares at a 25% premium to the market price.....got to be a good sign on top of the recent earnings and performance news!!

[williemanjaro] 24/2/2009 07:52

Well The Times are not so sure-for them he`s the Chairman!
Deal of the day

Bernard Asher, chairman of Relax Group, the debt advisory firm, formerly known as Debts.co.uk, bought 50,000 shares at 100p each. The shares, flat at 79½p, have enjoyed a strong run after the firm unveiled better-than-expected trading figures last week. It is expected to benefit from the recession turning more debts sour.

[alexacj] 23/2/2009 20:14

I knew he was a non exec...but didn't realise it was his maiden purchase.......a good sign!!

[williemanjaro] 23/2/2009 18:37

He`s a Non-Executive and this represents his maiden purchase. Still-I didn`t notice he paid a premium-good spot and fairly bullish......now awaiting the next "POP" upwards.

[alexacj] 23/2/2009 17:56

I see the chairman has bought 50000 shares today....he had to pay £1 a share!!!!!!!! Something tells me that there can't be too many shares floating around at the moment!! Another positive sign is that he was willing to pay 25% above the market rate for his shares!!

[guru11] 22/2/2009 21:17

The Council of Mortgage Lenders House expected repossessions to be around 45,000 this year. One figure mentioned next year could be nearer 70,000.
Normal mortgages are still around 4 to 4.5% even though the base rate is only 1.5% or is it 1% now. We have seen a massive rise in food prices, gas and electric prices together with Council Tax and now Water Rate charges, not to mention London transport prices having gone up above inflation year on year.
No wonder why people have less or no disposal income left, and debt is now a real issue to many people. The future could be gloomy except those with shares in RLX who could profit from people's misfortune.

Also - write up in the IC last Friday.

[alexacj] 20/2/2009 16:42

The normal MM games I suspect Willie......seems to be virtually all buys today......doesn't really matter to be honest....in the short term the markets are finding new lows......that is hardly surprising given the economic woes that have engulfed the world!! Ironically its that backdrop that is providing RLX with their "very best" levels of business... to quote the chairman!! It seems to me that the recession (or should we now call it a depression)is accelerating......whilst we are confirmed to exceed estimates this year I'm going to be very interested in seeing the estimates for 2010.....they should put a smile on shareholders faces imho!!

[williemanjaro] 20/2/2009 16:31

Given the size of trades ticking through-all very cloak and dagger as per usual---I presume some of these large ones are trades from yesterday hence that jump?
A 3.6% retreat after a 20% jump- can live with that Tonto :^)

[guru11] 20/2/2009 10:06

alexcj - agree some good points - certainly the economy is getting worse by the day - people will now be loath to spend money, banks are loathed to lend money, the CML is suggesting 45,000 homes to be repossessed, so more people seeking debt management advice.

I myself am doing a lot more self budget monitoring of my own income and expenditure. The problem out there is - people are not asking the following question before buying -
Do I really need what I am buying and
If I do can I buy it cheaper
We have too many spend aholics around - spending for the sake of spending.