Roberts001I watch this stock, I also have a position. I am in...

Roberts001

I watch this stock, I also have a position. I am in the Real Estate Industry. The problem with Run Corp is that no one understands the business it is in. realestate.com.au fall to 8 cents before people woke up to it and took time out to understand what it was about, now look at it - the largest Real Estate web site in the country. Run when it first listed at $1 was set up by the ex head of the NAB and realestate agents. With all their combined knowledge they got it wrong. The centralization of a property management department has huge cost saving benifits but the public were not prepared for the concept. The mum and dad investors were still looking for the corner agent to manage their property. As time has gone bye the investors have caught on and more and more of our daily business is done over the Internet, email and funds transfer and this has just changed in the last two years. Investors in Property are getting more sofisticated and more and more money is coming from overseas therefor dont need to be able to walk into an office. The add on benifits wiil eventually provide more income to rnc.

What you have to look at is the underlying value to this stock which is the Property Management rights. The Directors have addressed their mistakes, costs are coming down they have opened satellite offices and are licensing their product and back office functions to the wider industry.

When you look at the Govt stats of population growth there is an ever increasing need for accomadation hence rents will rise and so will rnc's income.

The biggest problem with my industry is that most bankers dont even understand our business and its true value. The issue I see is that the NAB covenants require 75% of its free cash flow to go to debt reduction if I have read it correctly to reduce its debt which is a good thing so once it debt is well under control the dividends will flow.

This stock will flow plenty of cash at some point in the future and then you will see a huge return on your investment.

One day in the not so distant future the investment community will wake up to it. This is only my opion but I am a true believer in the product. (excuse my spelling I am typing in a hurry befor leaving the office)