Australia: Inflated property valuations to hit the Big Four

There have been three high profile share price collapses due to excessive debt in Oz in the recent past.

Commander is an IT company/telco which borrowed heavily to finance a series of acquisitions.

au.finance.yahoo.com/q/bc?s=CDR.AX&t=1y&l=off&z=m&q=l&c=

$2.26 down to 18.5c in 1 year. -92%

RAMS Home Group is a high street franchise based non-bank lender which was totally reliant on borrowing short to lend long and got killed when the credit crunch hit.

au.finance.yahoo.com/q/bc?s=RHG.AX&t=6m&l=off&z=m&q=l&c=

$2.51 down to 25.5c in 6 months. -90%

The latest one is Centro Property Group which borrows shitloads of money to buy and build shopping centres, mostly in the US.

au.finance.yahoo.com/q/bc?s=CNP.AX&t=1y&l=off&z=m&q=l&c=

$10.06 down to 46 cents in a few months.** -95%**

These were all reasonably big ‘household name’ type companies. Ouch.