http://www.rcg.tv

1

Off of recent highs, good levels of EPS and against that low PER ratio.

Plenty of growth, past, present and projected.

Recent director buys at 52/53p levels, AGM is 7th of June and a dividend will be paid later in the year to holders on the register on 7th July 06.

Given its performance so far, and the fact it is now well off its recent highs, through market correction only, it looks a very good short, mid and long term buy to me.

The Board recommends a final dividend of 0.5 pence per ordinary share, which
represents a 25% increase from 2004 dividend per share. The proposed final
dividend for the year is subject to approval from the Group's shareholders
during the Annual General Meeting on 7 June 2006 and will be paid on 5 August
2006 to ordinary shareholders on the register as at 7 July 2006.

http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=408898&in_page_id=2&ito=1565

Strong growth from RFID firm RC

FAST growing and Hong Kong-based, RC Group specialises in the development, manufacture and distribution of biometric and radio frequency identification technologies.

Dramatic rises in sales and profits were announced for 2005, first orders have been won in the Middle East, and intriguing collaborations are afoot with both Sony and Intel - the latter to jointly develop RFID solutions for the Chinese healthcare sector.

RC has also bought a 60% stake in two South-East Asian IT equipment firms (with options to take the remaining 40%) for a maximum 4.7m in cash and shares in a move that will allow the company to own both facilities for the manufacture of hardware products and retail outlets to sell its biometrics products directly to consumers.

Broker Corporate Synergy has also raised a bumper 25m for the company through a new share placing pitched at 53.5p, to boost working capital and fortify the balance sheet.

The funding should help RC tap into burgeoning target markets on a tear over the past eighteen months or so, growth that helped RC post 360% sales growth to over 15m last year, with profits powering up 114% to almost 5m.

Despite its growth appeal, profitability and cash generation, RC trades on a forward multiple of only 11.4 based on forecast 2006 profits of 7.7m and earnings of 5.4p from 24m sales which looks miserly indeed. Improved liquidity and recent collaborations and acquisitions make the shares a good buy.

Recommendation - Buy

Should say those figures of forward PER ratio of times 11.4 was when the article was written and that was pre-correction, the price at that time was 61.5p (5th May 06).

Opened up today and ticked up too.

L2 up and now 1 v 1 @52.5/54.5

AGM this coming Wednesday 7th June.

PP, thanks for new thread with a realistic title. I believe these have along way to go over time as have gained a foothold in a relatively niche market of bio-metrics & security. Holding since 27p.

Silvermede, I thought it needed it, the other thread title was a little...well.....OTT ? :)

This from 26th May the interest in respect of RCG's RFID involvement (with RFID forecast to grow from $300m to $2.8 billion by 2009):

http://www.growthbusiness.co.uk/expansion/26570/rfid-goes-mainstream.thtml

Small Extract of that article :

"The control of supply chains from manufacturer to wholesaler and retailer is perhaps the most obvious use but there are much wider applications. The key to RFID is imagination, ventures Raymond Chu, chief executive of AIM-listed technology group RC. If you consider a laptop computer in an office, for instance, you could use RFID to prevent theft, because as soon as someone tries to carry that computer beyond a certain point it would trigger an alarm or subsequently use GPRS to track its location.

To reiterate the flexibility of the technology Chu points out that RC has already won deals relating to evidence management, weapon management, visitors check-in, document tracking and car parking. Many familiar with the London transport system, meanwhile, will already be carrying around an RFID chip in an Oyster Card, as will anyone in possession of a ticket for this summers football World Cup."

June 2006, general RFID progress.

Extract from the article below :

http://www.dcvelocity.com/articles/20060601/news.cfm


..............RFID gains at Wal-Mart better than expected

For those impressed by the preliminary results of Wal-Mart's RFID pilot program, we have good news. The final results have turned out to be even better.

Early reports indicated that RFID had cut out-ofstocks by 16 percent in 12 Wal-Mart test stores. But in fact, RFID has resulted in a 30-percent reduction in out-of-stocks on average. And with items that sell at a rate of six to 15 units a day, RFID has cut out-of-stocks by a whopping 62 percent.

"The preliminary results released late last year were conservative by design in that we did not want to overestimate RFID's impact," says Bill Hardgrave, director of the RFID Research Center at the University of Arkansas. Hardgrave notes that results varied widely by item. For example, with extremely slow-moving items that sell one unit every 10 days, RFID made no difference. "Those items typically will not be out of stock," he says. "Similarly, RFID didn't make a difference for items selling greater than 15 units a day, since associates stay on top of those items" to make sure they're replenished.

The use of RFID technology at the retail level could help to solve a $69 billion headache for retailers. That's the dollar value of sales lost annually by the nation's top 100 retailers due to out-ofstocks, according to Kerry Pauling, Wal-Mart's vice president of information systems. "We really believe that RFID is a very viable solution," Pauling says, adding that studies show that out-of-stocks average 8.3 percent on a global basis.

More than 300 suppliers currently ship RFIDtagged products to Wal-Mart, which receives them at five distribution centers. Wal-Mart is scanning more than three million unique tagged items per week in its network. By the end of 2007, Wal-Mart will double the number of RFID-enabled stores to 1,000 and plans to involve more than 600 suppliers in the RFID initiative.

Though some retailers have begun tagging individual items, Pauling says he doesn't expect his company to get involved in item-level tagging any time soon, though he acknowledges that Wal-Mart does some item-level tagging by default with large items like HP printers. "We'll remain focused on tagging cases and pallets for the next few years," he says..................

AGM RNS and generla update:

Immediate Release: 7th June 2006

RC Group (Holdings) Limited

(the "Group")

AGM Statement

The Directors of RC Group are pleased to announce that at the Annual General
Meeting of the Company held today, all the ordinary resolutions put to
shareholders were duly passed.

Update on Trading for the First Half of 2006

The Board is also pleased to update shareholders that the first half of 2006
has been a period through which the Group has continued its evolution and
expansion. Through its three recently acquired and integrated businesses, the
Group has successfully launched a range of new and advanced biometrics products
and has, through the period, continued to build on its collaborations with
blue-chip partners. As a result the Board strongly feels that the Group's
prospects for growth have never been greater.

One area of particular progress has been with the Group's entrance into the
Middle Eastern market where its focused efforts in establishing increased brand
recognition and credibility have proven very successful. As a result of these
increased efforts, sales recorded in the region have trebled in the first half
of the year as compared to the Group's announcement in April 2006. With this
significant growth and success, the Directors are pleased to announce the
opening of its Middle East office. The office will form the main operational
base for the Group's expansion into the Middle East market and is expected to
be fully operational within the next three months.

The Board is also pleased to announce that the Group has continued to build on
its ability to collaborate and innovate on product development and has jointly
developed an intelligent security network ("ISN") with General Electric and
Sony. The ISN uses eight interconnecting modules and will be showcased by the
Group, General Electric and Sony at the upcoming Asian Securitex 2006 which
will take place from 7 June to 9 June at the Hong Kong Convention and
Exhibition Centre. The ISN is sustained by advanced biometrics, RFID, CCTV and
DVR technologies that capture, store, track, record, project and display
information via a monitoring station.

It is the belief of the Board that with this significantly enhanced value
proposition, it is the Company's intention to make every effort to extend its
leadership position in the industry.

For further information:

Dr. Raymond Chu/ Anita Chau

RC Group (Holdings) Limited

Hong Kong

00 852 3669 6999

Romil Patel/ Rhod Cruwys

Corporate Synergy

00 44 20 7448 4400



Andrew Tan

Hansard Communications

00 44 20 7245 1100



RC Group (Holdings) Limited is a leading international developer, manufacturer
and solutions provider in the biometrics and RFID technology industries, which
was listed on the Alternative Investment Market of the London Stock Exchange in
July 2004. The Group has an aggressive growth strategy with a clear focus on
developing new applications and revenue streams for global roll-out,
particularly in the security applications industry.

Excellent AGM statement there !!

Some background info on some of the things going on in the UAE :

http://archive.gulfnews.com/articles/06/04/04/10030477.html

I'm in this one too. Good growth stock.

PP, Good find from Gulfnews - interesting references to 'GPS' and 'technology to power their notebooks' ?? Clearly RCG are aggressively expanding their portfolio of services/products, which if cost effective bodes well for the future growth of this company. :-)

Can't make sense of the selling today. A Value share with good fundamentals:

Fundamental Information
Shares in issue(m) 135.26 Div per share(DPS)(p) 6.70
Market Cap(m) 933.33 Div Yield(%) 1.33
PE Ratio 8.58 Div Cover 6.43
Operating Margin(%) 30.59
Profit Margin(%) 30.59 EPS (p) 59.00
Turnover per share(p) 1.93
PEG Factor 0.06 ROCE 133.97
Fiscal Year End Date 31/12/05 Last Update 19/06/06

All I can think of is the China Factor?????

Shake down on SpreadBet closing day, thats all.

Expect it to rise back tomorrow as people can now buy March 07 SB's now that June 06 closed today.

Well PP, today's trading statement backs up my opinion of RCG as a real VALUE share, very good news:

Embargoed Release: 07:00hrs Wednesday 21st June 2006

RC GROUP (HOLDINGS) LIMITED

(`the Group')

Trading Statement

RC Group (Holdings) Limited, the leading international security systems
provider that specialises in the development, manufacture and distribution of
biometric identification and RFID technologies, is pleased to announce that the
Group has successfully built on its achievements from last year and
outperformed its targets this financial year.

As a consequence, the Group expects to report interim results significantly
ahead of market expectations.

Dr. Raymond Chu, CEO, commented:

"As reported in our AGM statement we are very pleased with the Group's
performance to date and are very happy to once again beat market forecasts."

-Ends-

For further information:

Dr. Raymond Chu/ Anita Chau

RC Group (Holdings) Limited 00 852 3669 6999

Hong Kong

Romil Patel/ Rhod Cruwys

Corporate Synergy 00 44 20 7448 4400

Andrew Tan

Hansard Communications 00 44 20 7245 1100

RC Group (Holdings) Limited is a leading international developer, manufacturer
and solutions provider in the biometrics and RFID technology industries, which
was listed on the Alternative Investment Market of the London Stock Exchange in
July 2004. The Group has an aggressive growth strategy with a clear focus on
developing new applications and revenue streams for global roll-out,
particularly in the security applications industry.

That is a lovely update SM !! :)

More Good News :)

Friday 23rd June 2006 RC Group (Holdings) Limited

RCG successfully enters Europe Market through distributorship and partnership with NSP Europe

http://www.investegate.co.uk/Article.aspx?id=20060623070000P9A8E

This Company gets better & better, as long as the expansion doesn't stretch them too much too quickly.

Latest armshare update extract below, full article on the site, link below :

http://www.armshare.com/index.php

".....................................A June update reported that the interim results to June 2006 are expected to be significantly ahead of market expectations.

Research Standing

Hard to find chinks in the armour.

The company broker's note dated dated 21st June projects EPS of 6.4p for 2006 and 7.4p for 2007 representing P/Es of 7.7 and 6.7 respectively based on the share price of 49.5p at 21st June..............."

belated link to a favourable write up in Citywire:

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=83586&re=219&ea=91399

RC Group (Holdings) Limited
18 August 2006

RC GROUP (HOLDINGS) LIMITED
('RCG' or 'the Group')



RCG ENTERS MAINLAND CHINA THROUGH AN EXCLUSIVE AGREEMENT WITH CHINA'S LARGEST IT
DISTRIBUTOR


RCG, a leading international provider of biometric identification products,
security and RFID systems, today announces its entry into the People's Republic
of China ('PRC') market. RCG and Digital China Holdings Limited, listed on the
Hong Kong Stock Exchange ('Digital China' and HKEx stock code 0816), the largest
IT products distributor in the PRC, have signed an exclusive distribution
agreement under which Digital China will become the sole reseller of RCG's
biometric products across mainland China.


Digital China's business spans the entire country with a comprehensive network
of 6,000 resellers and stores. Headquartered in Beijing, Digital China began
operations in 1980 and today has annual revenues of over RMB20billion
(GBP1.4billion). Under the terms of this agreement, Digital China will resell
RCG's high-end biometric products throughout the PRC.


Digital China is also a key distributor of RFID products and is experiencing
increased demand for RFID solutions. RCG, acting as Digital China's recognised
technology partner, will become its appointed RFID solutions provider throughout
the PRC.


The Directors expect that revenues from the PRC will have a substantial positive
impact on Group sales from 2007. RCG is setting up a flagship store in Beijing
and will recruit local staff for its new hub office in Beijing. To support the
development of the PRC market, RCG anticipates investing approximately GBP1m on
staff, sales and marketing during 2006 and 2007.


Dr Raymond Chu, RCG CEO, said:


'This is a very important strategic development for RCG and a highly
complementary deal for both parties. The agreement gives us immediate scale and
reach across the entire PRC market and a prestigious technology partnership with
one of the country's most respected companies.'


'With its technical expertise and high quality client base, Digital China is the
ideal reseller for our market-leading fingerprint and facial recognition
systems. I believe that RCG's skills and experience in RFID will significantly
strengthen Digital China's offering in this area. We are delighted to be
entering into this agreement with Digital China and look forward to a mutually
beneficial long-term partnership.


'The opportunity in the PRC is clear, with the economy growing approximately 10%
per annum, and with sales in biometrics alone forecast to grow to more than
US$1bn per year by 2010. However, for a specialist company such as RCG, finding
the right channel to market is essential for breaking into the PRC, and it is
for this reason, that we are particularly delighted with this agreement.'



Mao Xiangqian, Senior Vice President, General Manager of General IT Unit,
Digital China commented:

'We are delighted to partner with RCG who are pioneers in the biometrics, RFID
and security solutions sector. This is an ideal cooperation as we have a strong
distribution network and RCG has excellent products and advanced technology
know-how. Digital China will work closely with RCG to penetrate the biometric
and RFID industry in the PRC, providing the most advanced IT and security
solution to enterprise, home and individual users'.



-ENDS-

Growth strategy appears on track, the potential of this deal would seem very significant. I wonder if they will get any contracts related to the 2008 Olympic games in Beijing? Long Term Holder & this share pays a Divi too! :-)

a good point about the olympics i hope there some deals for rcg, i think this share will be worth 5 in 5 years easily.

RCG's Deal with Digital China is mentioned in the Times Business Section (Sat 19 Aug 06). :-)

This share is really starting to move up now, perhaps people are recognising the real value and growth potential of this company and the recent Digital China deal.:-)

i totally agree mate and purchased some 2000 more shares, rcg will be massive in 5 years time. new web site design also!!!!
The Drax power station protest is the reason for the share price move on 31/8/6. also secure design is another biometric to look at.

Nice to see it moving up again :)

On the move up as we approach interim results next week (26 Sep 06). :-)

lots of sells in the afternoon though, i have taken a guess from past performance as to the results, 8 million profit on sales of 24 million for the first 6 months that would be quite something.

RC Group (Holdings) Limited
20 September 2006

20 September 2006

RC Group (Holdings) Limited

Appointment of Non-Executive Director


RC Group (Holdings) Limited ('RCG' or 'the Group'), a leading international
provider of biometric identification products, security and RFID systems,
announces the appointment of General Dato Seri Mohd Azumi as Non-Executive
Director with immediate effect.

General Dato Seri Mohd Azumi, age 58, rose from second lieutenant to four star
General and retired as the Chief of Army of Malaysia in 2004 having served the
Malaysian Armed Forces for more than 37 years.

In 1991, General Dato served as the Senior Military Intelligence Officer
('SMIO') in the UN Military Observer Mission in Iraq and Kuwait. In that
capacity, General Dato drew up the 'policing plan for the de-militarisation
zone' and assisted the UN Foreign Commission in the return of Iraqi/Kuwait war
properties. General Dato was also involved in the conduct of security operations
against terrorists along the Malaysia/Thai border and in the states of Pahang,
Selangor, Sarawak and Sabah.

General Dato currently chairs and sits on the board of several privately-owned
companies operating in the defence, plantation, and engineering industries. With
more than 40 years' experience in the armed forces and security operations,
General Dato will provide the Group with an in-depth understanding of the
technological demands and requirements for security needs. The Group will aim to
develop its technology and products to meet the growing demand within the
security market. In addition, with his endorsement and influence in Malaysia,
Indonesia, Thailand, the Philippines and the Middle East, the current Directors
believe that his contribution will have a positive impact on the Group and its
financial performance going forward.

Commenting on the appointment, Dr Raymond Chu, RC Group's Chairman and CEO,
said:

'We are delighted that General Dato has joined our Board. He has extensive
experience in dealing with governments in Malaysia, Indonesia, Thailand,
Philippines and the Middle East. I believe the appointment will strengthen the
Board considerably and ensure that RCG continues to grow as a market leader in
the security industry.'


Full Name:

General Dato Seri Mohd Azumi Bin Mohamed


Current Directorships / Partnerships

PT Varita Majutama Pte Ltd
Sri Jentayu Global Pte Ltd
Idris Hydraulic Pte Ltd
Dewina Food Industries Pte Ltd
NADI Defence Industries Pte Ltd
Atlan Holdings Pte Ltd


Past Directorships / Partnerships

None

today (26/6/06) should be the day for rcg big rise i just found this quote from june 06 i wish i brought more shares now.
RC Group (Holdings) Limited, the leading international security systems
provider that specialises in the development, manufacture and distribution of
biometric identification and RFID technologies, is pleased to announce that the
Group has successfully built on its achievements from last year and
outperformed its targets this financial year.
Profits for the year was predicted to be 15million, i think rcg have passed that in six months.. lets see what happens........

Interim Results are cracking. Growth continues apace for this VALUE Share. Well Worth Reading the Full RNS. Extracted Highlights:

RC Group (Holdings) Limited
26 September 2006


26 September 2006


RC GROUP (HOLDINGS) LIMITED
(the 'Group' or 'RCG')

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006

Strong organic revenue growth driven by expansion of product portfolio and
client base

RC Group (Holdings) Limited, a leading international provider of biometric
identification products, security and RFID systems, is pleased to announce its
Interim Results for the six months ended 30 June 2006.

FINANCIAL HIGHLIGHTS*

Group's interim revenues grew by 371% to 22.6m (2005 interim: 4.8m),
exceeding full year revenues in 2005 by 46%
Organic revenues grew by 204% to 14m (2005 interim: 4.6m)
Profit before tax increased 357% to 6.4m (2005 interim: 1.4m)
Diluted EPS increased 179% to 3.9p (2005 interim: 1.4p)
Group's organic gross margin and net margin improved to 58% (2005 full
year: 54%) and 40% (2005 full year: 31%) respectively
Prudent cost control reduced central cost to 12.0% (2005 interim: 21%)
of revenues
Net cash at period end of 24.7 m (2005 interim: 1.3 m)

OPERATIONAL HIGHLIGHTS

Successful acquisition and integration of Skycomp Technology, Huge
Wealth Technology, UCH Technology and ECT-Asia securing sales channels
into the vast Southeast Asia market, Middle East market and lucrative
Asian casino market
High-profile research and development partnerships with Sony and Intel
The appointment of Digital China as an exclusive distributor of the
Group's biometric products has secured an important sales channel into
the PRC mass market
Fundraising of 23.45m (net) through an institutional placing at 53.5p
per share in May 2006
New product launch of the Fx-series in March has been successfully
received to date
Launch of innovative commercial laptop computer equipped and converged
with facial recognition and RFID track and trace security features
Strengthening of Board with appointments of Brian Lam as Finance
Director, Stephen Lai and General Dato Seri Mohd Azumi as Non-Executive
Directors


Commenting on the results, Dr Raymond Chu, RCG CEO, said:

'I am delighted by these results which demonstrate the increasingly strong
appeal of the Group's products and solutions, the development of our client base
and our continuing ability to rapidly drive forward both revenue and bottom line
growth. With current market trends, strong technology and extensive sales
networks, RCG is well positioned to further consolidate its position as one of
the leading providers of security solutions and biometric products.

'In the second half the Group will maintain its aggressive growth strategy. We
will continue to identify potential targets for acquisitions as well as focusing
on driving organic growth and delivering shareholder value.'

*Exchange rate used 1:HK$14.186

amazing revenue and profit growth! This is definitely a share to hold onto as not many companies could match this one.

what a cracking set off results, the sky the limit for rcg

RNS: Another Market Opening Up - Southern Africa!

RC Group (Holdings) Limited
17 October 2006

17 October 2006



RC Group (Holdings) Limited ('RCG' or 'the Group')

Entrance into high profile security markets of Southern Africa through an
exclusive joint venture agreement with Techno Investment (Pty) Limited

RCG, a leading international provider of biometric identification products,
security and RFID systems, announces its entry into the key markets of Southern
Africa through a joint venture agreement with Techno Investment (Pty) Limited
('Techno'), a specialist distributor of electronic goods and security solutions.
RCG and Techno have agreed to establish a joint venture, RCG Systems SA (Pty)
Limited ('RCG SA'), and a new regional office which will be based in
Johannesburg, South Africa, to market, sell and distribute biometric, RFID and
security technology products and solutions in Southern Africa. RCG will hold a
controlling 53% interest in RCG SA. Techno will hold the remaining 47% interest.

Techno has more than 30 years of operational experience in Southern Africa and
has built up and served a client base of more than 3,000 retail outlets across
the Republic of South Africa, Botswana, Lesotho, Swaziland, Mozambique, Zimbabwe
and Zambia. Security is becoming increasingly important in Southern Africa,
given the high levels of sophisticated crime across the region. The Directors
believe that RCG SA will be well positioned to tap into the significant
potential of this growing market given the strengths of RCG and Techno.

RCG SA is expected to commence operations by 1 January 2007. RCG anticipates
that its Southern African venture will broaden the Group's overall revenue mix
and enhance its geographical footprint. Under the agreement, Techno will be
responsible for all sales and marketing activities and make use of its extensive
network of existing customers. RCG will be responsible for providing technical
support and guidance. RCG SA will be jointly funded by RCG and Techno, with an
initial cash funding requirement by RCG of 200k towards equipment, facilities
and employees. The Directors anticipate the funding level to increase in 2007 as
RCG SA becomes fully operational.

Dr Raymond Chu, RCG CEO, said:

'This is a very important strategic development for RCG. The agreement gives us
immediate scale and reach across the entire Southern African market. We believe
that there is a huge market opportunity in Southern Africa given the high levels
of sophisticated crime. Techno, with its large distribution network and strong
management base, is the ideal partner for our penetration into the Southern
African market. We are delighted to be entering into this agreement with
Techno and look forward to a mutually beneficial long-term partnership.'

Mike Braude, Techno CEO, commented:

'We are delighted to partner with RCG who are pioneers in the biometrics, RFID
and security solutions sector. This is an ideal agreement since we have a strong
distribution network and RCG has excellent products and advanced technology
know-how. RCG SA will penetrate the biometric and RFID industry in the Southern
African market, providing the most advanced IT and security solutions to
enterprise and individual users'.

Yet another appliaction for RCG's products:

RC Group (Holdings) Limited
18 October 2006


18 October 2006

RC Group (Holdings) Limited ('RCG' or 'the Group')

Launch of RCG Airline VIP check-in solution, a new security and customer service
solution for the air transport industry


RCG, a leading provider of biometrics and RFID applications and solutions,
announces the launch of its Airline VIP check-in solution, a bespoke solution to
address security issues and enhance levels of customer service in the
international air transport industry. Furthermore, RCG announces that it is
working with its Indonesia partner PT. Samgar Perkasa, a contractor of Garuda
Airline and two Indonesia Airports, to deploy the Airline VIP check-in solutions
for Garuda Airline as well as a security solution for the Indonesia Airports. At
this initial stage, RCG will receive a nominal consultancy fee for conducting a
feasibility study with PT. Samgar Perkasa.

The RCG Airline VIP check-in solution integrates both biometric and RFID
technologies in order to streamline the passenger check-in process, enhance
security levels and provide value-added customised services for VIP travelers.
The solution, which combines a number of digital authentication processes, truly
demonstrates the advanced nature of RCG's integrated hardware and software
solutions. In addition, this application can be easily modified for use in train
stations, ports and any other form of mass transportation.

The Airline VIP check-in solution provides enhanced security via multiple
authentication methods in addition to heightened customer service. Its key
features are as follows:


1. VIP Express Check-in Counter

Users are provided with a tamper-proof RFID card to use at an express
check-in counter.

The RFID card stores information on the individual which is encrypted
as an additional security measure.

User identification will be quickly verified by his/her face and
fingerprint.

An active RFID tag in the user's boarding pass will enable an airline
to track the location of the user in the airport.


2. Express Security Screening Area

RCG's FxAlert facial recognition system will be able to verify a user's
identity at different locations in the airport with minimal inconvenience.


3. VIP Lounge

The RFID card will enable the system to retrieve information about the user
for the airline to provide customised treatment regarding, for example,
their preferred refreshment or reading material.

Real-time flight information such as service upgrade notification will
also be provided to individual users through RFID activated kiosks.


Dr Raymond Chu, RCG Chairman and CEO said:

'Increased security measures have led to more time-consuming methods of airport
check-in. This is a significant and growing issue for the air transport
industry, so there is a compelling need for our Airline VIP check-in solution in
the industry. This application, once again, demonstrates the versatility of the
RCG products and solutions and our ability to combine both RFID and biometrics.'

'We are very excited to launch the new Airline VIP check-in solution, which we
believe has the potential to enhance security and flexibility for travelers
around the world.'

From THE INDEPENDENT today:

The Investment Column:

Buy RC Group

This probably explains the rise.

about time someone put a buy rec on rcg it needs some press for all the good work it is doing!

Nicely in the blue today. Onwards & upwards!

very nice and blue, there have been a lot more trades lately not necessary all high volumn. my guess at full year profits say 20 million!

Again nice start to the week. Onwards & upwards!

yes lots of sells today though and price still up 1p!

Looking strong at the moment, I think a new brokers note might be out ?!

rcg probably made lots of new deals/contracts at the biotech conference in london last week and people who went are buying the shares?!

I was sent the following in a free e-mail from Profit Watch today, who are putting together a report, I reckon it is RCG, so we are ahead of the game. See what you think:

"Well on Monday I sat down with the Profit Watch team to
go through all the investment ideas weve had over the
past few weeks. And we came out buzzing. Weve got so
many fantastic investment ideas were working on, weve
had to put some on hold and focus on the cant wait
any longer top three!

All our regular analysts and writers have taken the
last week to read each others preliminary ideas and
research. On Monday we went through them all and
selected the top three the three we believe are the
most exciting stories... the ones that have the most
profit potential.

Top of the list right now is homeland security.
Following the September 11 2001 terrorist atrocities in
New York, its no surprise that the US is far ahead of
any other country in defending its borders from such
threats.

Billions of dollars have been spent on transport
security (with 43,000 Transport Security Officers
recruited since 2001) and there has been $10bn in US
government grant funding just for US port security.

Bush is serious about preventing a repeat of 9/11.

But theres a huge untapped market around the world and
we think there is a huge opportunity to profit as the
technology for thwarting terrorist attacks is taken on.

And weve found a cracking stock to help you profit
from this trend.

The company were looking at is involved with
biometrics and RFID technology.

If youve been reading Profit Watch for a while, youll
know all about RFID weve covered it many times over
the last couple of years.

[And if youve already signed up to our new PROFIT
WATCH RECOMMENDS premium advisory service, youll be
receiving in the next few days an in-depth report
showing you how this technology is being used in the
casino industry... and how you can make money from it.]

In a nutshell, Radio Frequency Identification, or RFID
for short, is a set of technologies that uses silicon
chips to track the location of things. The company
weve found is using this technology in integrated
security devices. Its big business.

---------------------------------------------
Were onto a stock involved with James Bond
technology in the fight against terrorism
---------------------------------------------

And as for biometrics, the objective of these is to
identify people, pure and simple. This can be achieved
by four main routes: fingerprinting; voice recognition;
retinal scanners (as in the James Bond movie Never Say
Never Again); and increasingly advanced facial
recognition technologies.

Our little company has groundbreaking new technologies
at the forefront of the accelerating boom in high
performance security equipment. It has a near global
reach, with its roots in Asia-Pacific covering HK/China
and Malaysia but with offices in the EU and the Middle
East and plans to enter the US market during 2007."


So when report comes out we could see further SP rises. Good luck to all holders!!

Interesting post Silvermede. I've just recently bought in again. Sounds like RCG, lets hope for report soon.

Interesting, Silvermede. It's a bit of a game, guessing what the stock is on these trailed emails without paying for the report itself. I picked up ABM, DFD, KMR, FOGL that way.

sd

Stockdog: Agree, but if already familiar with a company then these attempts to wet the investors appetite to subscribe, tend to stand out like sore thumbs. I had a similar case for CFU from Profit Watch last week. Any way the point is if tipsters are interested after doing extensive research, it tends to give one a warmer feeling if already invested (rightly or wrongly!). :-)

very interesting, Silvermede, it seems like rcg to me! The James bond quote was in the investors champion mag during rcg last full years results say march-april 06. whats profit watch? web site please? the news annoucement today about corporate synergy plc options of 868,421 shares seem to suggest there will be a shortage of shares soon or CS are taking the money and running. The US deal agreement in 2007 seems to be spot on for rcg. this seems to good to be true.... only time will tell.

the way Profit Watch write the above certainly makes me want to subscribe - NOT

The old black box approach -- we've got someting special, it could do this or that but we're not going to tell you what it is, but it is really something special

Don't get me wrong RCg looks like the real thing -- I have been posting on the stock on an earlier thread -- but any impact these guys are likely to have by liking or disliking a stock will be fleeting. As Silvermede says the impact of such research has the effect of making investors feel warmer about the stock they already own -- for me it means the story is increasingly well known and therefore the price is discounting more and more of the reasons why it was a good investment in the first place.

argos7: link to website as requested, there you can sign up to 4 different free e-mail topics.

http://www.dailyreckoning.co.uk/website/eletters.html

Profit takers cleared ---- set to run ??

Confidant: Looking good! :-)

in the shares mag last week pages 28-31 there some more detail on rc group. coe spending most of his time in china and "our backlog already cover 85% of Q42". rcg price is resistant to 72p lets hope for a break out soon!

a new news release about china set up is on the rcg website not broadcast to lse yet.

Thanks Argos, sounds as if all progressing well.

look at the late trades today 200K and 137737 shares purchased, i wish i purchased at 10p two years ago!

RCG mentioned in The Daily Telegraph - The Questor Column (the Your Money Section) - Buy RC Group

DYOR

Rcg up 4.5p on friday. it should open higher on monday with news about the nationwide laptop going missing, as rcg has the worlds first facial recognition laptop!

A good point argos7. Increased security is needed and the Nationwide problem is a key highligher of why its needed.

Maybe it could be difficult to recognise the look on his face that particular morning - when he realises he's lost it.

Lovely news again today in the RNS

PP, That's odd, I can't find today's RNS on the system, only a later summary as below. Good news though.!

LONDON (AFX) - RC Group Ltd (RCG), provider of biometric ID, security and RFID systems, said it has won several radio frequency identification (RFID) projects in southeast Asia.

RCG will provide a sophisticated security system for Al Team Malaysia at the Al Grand Prix in Malaysia in November and 'it is intended that this relationship will continue for the rest of A1GP season,' said the firm.

The deal has boosted sales of FxGuard Windows Logon box systems, said RCG.

The company has also won a five year contract with Sunway Lagoon, one of Malaysia's largest theme parks, to provide RFID ticketing and point of sales systems.

In addition, RCG said that its RFID systems are being used at a private Malaysian hospital to track newborn babies, and in a government school to track library books and equipment.

Financial details of the deals were not disclosed.

The company also said that RCG Malaysia has recently been granted Pioneer Status by the government, allowing a five year discount on the Malaysian corporation tax rate to 8.4 pct from 28 pct. This is expected to enhance the group's net profit margin, it added.

newsdesk@afxnews.com

Nice end to the day.

Full Press Release on the RCG website - http://www.rcg.tv/ or see link in the Thread Header.

:-)

a super update from rcg but the big point is that profit margins will now increase take at look at rcg latest interum results in the breakdown/segment analysis section, RFID was 60%profit margin very nice!

more rcg news on the rcg website patents for rfid in china

Just found out that RCG was tipped as a buy and re-instated into the The Share Weekly portfolio by Kewill Lewins last Friday (17 Nov 06). Strong write up with plenty of upside to come.

more good news today! I cant wait for final results for rcg this year i reckon 18 million profit.

Running for Xmas --- well I've bought my face recognition software to make sure it's only Santa that's coming down the chimney

very funny! if the share price keeps rising our computers wont regonise our big smiles! i guess the share rise today was because of terrior threat news before xmas which occured on the weekend, there was a trading update in jan 06 hoping for another in 07!

Come on guys,

A spike like that on Monday morning followed by high volumes. I would suggest one of the monthly investment newsletters has tipped them somewhere.

I'm not complaining though.

yng

this might be why check out rcg website

Wavetrend, the leading manufacturer of active Radio Frequency Identification (RFID) technology has appointed the AIM-listed biometrics and RFID specialist RC Group (Holdings) Limited (RCG) as an Accredited Channel Partner for the Asia/Pacific region.

Accredited Channel Partners are supported by Wavetrend to design, develop and deliver innovative solutions based on the groups open architecture platform. Through its 40 Channel Partners worldwide, projects have been deployed successfully across multiple market sectors including security, defence, health, transport, mining and natural resources.

RCG combines expertise in both biometric and RFID technologies to offer solutions that enhance security and increase convenience for enterprises and end-users alike. These solutions can be applied to a number of industries such as aviation, healthcare, logistics, casinos and real estate. The Group has expanded rapidly in Asia and the Middle East, and has recently signed an agreement with Digital China Holdings, the largest IT products distributor in the Peoples Republic of China, to penetrate the biometric and RFID markets across mainland China.

Raymond Chu, Chairman and Chief Executive Officer of RCG commented: Our skills in the fast-growing active RFID market are highly complementary. This agreement provides us with access to cutting edge technology and an open platform architecture through which to provide yet more innovative solutions to our customers.

We are excited at the prospect of working with RCGs experienced team of professionals, said Chris Bishop, CEO of Wavetrend. We recognise there are significant opportunities for us to jointly develop projects across Asia and the Middle East region and look forward to a productive relationship.

rcg been quiet of late but i think theres a trading update due mid jan?, I was surprised no paper/media has tipped the shares for 2007.

They have -

http://news.independent.co.uk/business/analysis_and_features/article2116934.ece

Things are going well, the only concern I have is the Hong Kong dollar is pegged to the US dollar, so this is going to reduce the levels of earnings in sterling pounds terms.

Its not a major issue, but short term it could be dangerous if expectations get built too high, and then there is a let down.

a good day for rcg +7% probably due to thailand bombs on new years eve and the positive market today! thanks for independent link, as for exchange rate 1=14.54 hong kong dollars if this get above 1=15.5 then i will start to worry.

The last interims were calculated at 14.18 HK$ to the pound.
The last prelims were calculated at 13.34 HK$ to the pound.

Todays rate is 15.36 HK$ to the pound ( http://www.xe.com ). The HK$, like RMB, is pegged to the US$ and will fall with it or rise with it.

From interims to now is fast approaching a 10% change, to the detriment of RCG in sterling terms of conversion.

a good point but rcg are improving there margins at the moment RFID so this should hide some of this and the balance sheet are all in hong kong dollars also i think some web services dont realised this for rcg

Great trading statement out this morning.

Earnings growing like topsy on a p/e rating of probably 12, a lot more to come here I would imagine.

capa

RC Group (Holdings) Limited
15 January 2007



15 January 2006



RC Group (Holdings) Limited

Trading Update



RC Group (Holdings) Limited ('RCG' or 'the Group'), one of the leading providers
of integrated biometrics and RFID security solutions, announces that trading for
the second half of the year has been strong and as a result RCG anticipates that
its results for the twelve months ending 31 December 2006 will be significantly
ahead of market expectations.



RCG will announce its Preliminary Results on Monday 12 March 2006. There will
be a briefing for analysts at 9.30am at Financial Dynamics, Holborn Gate, 26
Southampton Buildings, London WC2A 1PB.



Commenting, Dr Raymond Chu, Chairman and CEO of RCG said:



'We are delighted by RCG's impressive performance across the entire business
during 2006. During the year we have made great strides. We have updated our
technology to provide new, leading security solutions and also increased our
presence in China, Malaysia and the Middle East. We are now in a very strong
position to continue to leverage our unique products and capitalise on our
successful business model.'

Up 16% at close, finishing on an intra day high, thats bullish I reckon.

Great stuff

capa

what a day for rcg 15% up lots of sells near end of day but this was 10p at ipo 2 years ago and has a long way to go yet! As for P/e ratio rcg has been at pe of 8 for far to long, i am still hoping for 24 million pre tax profits in the final results on MARCH 15th. 5 here we come!

Buy rec in shares mag - better late than never.

Thanks zscrooge, seems to be having the desired effect

capa

the shares mag tip was a good read apart from the funamentials...
pre tax profits in 2006 to be 15.7million, rubbish again i reckon nearer to 24 million as for 2007=17.9million from the analysts this figure has not taken the China deal into accounts humm only 14% growth for rcg between 06/07. 2007 profits I wont dare guess.......

I just found this also good news...
LONDON, Jan 15 (Reuters) - Chinese fingerprint and facial recognition systems company RC Group Plc is targeting banks and airports for its security systems and said its 2006 results would beat market expectations, boosting its shares.

"We are currently in talks with one bank in Dubai and also with a couple of banks in China to deploy our security solutions for their banking services," Raymond Chu told Reuters in a telephone interview on Monday.

"With our systems, people go to the bank and just use their fingerprints or faces to get money out of the machine or do other banking services," Chu said, adding that the focus in 2007 would be to provide their products to the mass market.

"People might still be feeling more comfortable with using their debit or credit cards, but the technology is there to make things more secure and the fingerprint is your best friend," Chu said.

The firm, whose technology is also used to track newborns in hospitals and allow access to laptops via webcams, expects 2006 results to come in significantly ahead of expectations.

Corporate Synergy analyst Tony Lancelott raised his 2006 pretax profit and sales estimates by over 10 percent to 15.7 million pounds ($30.8 million) and 54.9 million respectively.

In 2005, RC made a profit of 4.4 million pounds while sales came in at 13.5 million.

The news lifted RC shares 7.8 percent to 97 pence, valuing the company at around 190 million pounds.

Chu is confident that biometrics will be used more and more in everyday life, as it facilitates procedures, provides greater security and "is fun".

"We think that the capability and the market to deploy biometrics on a massive scale is there," Chu said, adding RC was already targeting chain stores and health clubs in China.

Biometrics uses individuals' physical characteristics -- such as fingerprints, hand geometry, eyes or voice patterns -- to assist identification.

RC Group has also made progress in its target to provide its security solution to airports and airlines to strengthen security and smooth passenger journeys.

"We are in talks with five airports in China and two airlines in Asia," Chu said. Last year, the Hong-Kong-based firm ran a pilot project with an airline and two airports in Indonesia. ((Reporting by Kerstin Neuber, editing by Mike Elliott; Reuters Messaging: kerstin.neuber.reuters.com@reuters.net; e-mail: kerstin.neuber@reuters.com; phone +44 20 7542 1774)) ($1=.5103 Pound)

Buyers returning today. SP has bounced off the 9 DMA, consolidating well above the 100p level. Lots more to come with this stock. Happy to hold. :-)

Profitwatch is plugging guess who.

"Our superstar stock is already up a healthy 55% since
we tipped it in November, and were bullish ahead of
the companys final results in March. Stick with it."

The name to be revealed only to subscribers! But we know don't we.

Sure do SD, it's the same with CFU. Happy to hold both and in long before Profitwatch went public.

There is plenty more to come from rcg i noticed on their website you can buy the items, prices in USD max item is the laptop at $2209! I am holding for at least 5 years and buying more went sp is weak, like last night. I hope the dividend is raised also!

LONDON (AFX) - RC Group (Holdings) Limited, an international provider of biometric identification products, security and RFID systems, confirmed it has secured new orders of around 3.8 mln usd for the current year in the Middle East.

RCG Middle East has continued to build up its distribution networks throughout the Middle East with sales orders having been confirmed from Jordan, Kuwait, Lebanon, Saudi Arabia, Syria and the United Arab Emirates ('UAE'), the company said.

Orders include demand for the i4+, S-series products, Fx-window logon, FxGuard Pro and Fx-laptop, as well as tailor made multi-factor kiosks combining fingerprint, facial and RFID identification.

One of the orders is for the provision to one of the UAE's leading private banks with a fingerprint recognition-based security system for its 50 plus branches in Dubai.

In addition, Sharjah Charity International ('SCI'), a Sharjah-UAE based humanitarian organisation operating both within and outside the UAE, has been provided with a compact device for convenient yet secure access control to its premises.

RCG's biometrics system has also helped streamline attendance management and time recording, moving the organisation away from maintaining manual records.

RCG said it has also has designed and installed a biometrics time and attendance system at a well-known oil refinery training centre used for the majority of oil centres in Abu Dhabi.

Nice move up again today. looking good.

Rcg is always performs well on a monday, i hope 120p resistance is now broken!

RCG tipped in the sunday financial mail today expect a rise on monday as always!

Any chance of posting the article on the Sunday financial mail or a brief outline of the article

rc group in shares mag again under security artcle i am surprised its not in the Aim 50 share group section yet, if someone could explain why and when this might happen please?

Does anyone have a target price for this stock, short & long term ?

All time high reached today, Results on Monday.

lots of sells the last 2 days in rcg at end of days, I am a bit concerned on these sells, result will be excellent 25 million? but I feel there may be more shares listed to expand RC group.

Everyone to their own, bought in yonks ago and sold half at over 100% other half in for the long term over 300% up already, but still a long way to go. I will hold these until first sign of weakness.

Been in and out of these 3 times and done nicely after results I intend buying again on the inevitable pull back. Great company-seems a rosy future here.

moneyplus where do you reckon it could pull back to ?

Cracking set of results:

RC Group (Holdings) Limited
12 March 2007


12 March 2007

RC GROUP (HOLDINGS) LIMITED

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006


Strong results ahead of expectations - foundations laid for continued rapid
growth


RC Group (Holdings) Limited (the 'Group' or 'RCG'), a leading international
provider of biometric identification products, security and RFID systems, is
pleased to announce its Preliminary Results for the year ended 31 December 2006.


FY 2006 FINANCIAL HIGHLIGHTS

- Revenues grew by 299% to 61.8m (2005: 15.5m)

- Excluding acquisitions, organic revenues grew by 181% to 43.6m (2005:
15.5m)

- Gross profit increased by 263% to 30.1m (2005: 8.3m)

- Profit before tax increased by 308% to 19.6m (2005: 4.8m)

- Positive operating cash flow of 1.6m (2005: 0.2m)

- Normalised earnings per share increased 151% to 10.8p (2005: 4.3p)

- Dividend per share increased by 20% to 0.6p (2005: 0.5p)


FY 2006 OPERATIONAL HIGHLIGHTS

- Organic revenue growth driven by successful new product launches, including
S-series, FxAlert System, FxGuard Windows Logon & Fx SecureBook

- New customer wins included the A1 Malaysian team for the A1 Grand Prix and
Sunway Lagoon amusement park, Malaysia, Sharjah Charity International in
Dubai, one of the leading private banks in UAE, and oil refinery training
centre in Abu Dhabi

- New partnerships with Intel, Sony, Motorola and Digital China

- Strategic expansion into attractive Middle East, South Africa and
Chinese markets

- Board strengthened with appointment of Dato Lee Boon Han and Edric
Ackland Snow

- Promising start to 2007 with positive sales momentum, particularly in
Middle East

Dr. Raymond Chu, Chairman and Chief Executive Officer, said: 'I am delighted to
report another record year of revenue and profit growth. This was a landmark
period for RC Group, during which we succeeded in both further leveraging the
exciting commercial potential of biometrics and RFID applications into the
security, gaming, entertainment and transportation markets, and in strategically
diversifying into carefully selected geographical markets of exceptional
potential.

'We anticipate that our core markets of Southeast Asia, China, the Middle East
and South Africa will continue to be leaders in the adoption of increasingly
sophisticated security and access control products based on biometrics and RFID
technologies. The lucrative potential of early-adopter demand in these markets,
combined with RCG's highly attractive products, deep technical expertise and
successful business model gives us a great deal of confidence in our Group's
future.'

Great reaction to a great set of results

Miles ahead of forecast and optimistic about future, goodness knows where this is going but with this sort of growth, cash in bank, dividend, current p/e is way too low imo.

Buy and hold with the occasional add on any dips is the order of the day here I reckon. Those looking to get in on post results selling must be cursing today.

all the best

capa

moving away from ridiclously cheap to just fairly cheap given growth expectations, still difficult to complain

Great set of results and well worth buying and holding as this company has a long way to go. The sp rise is higher than I expected but profit taking will pull it back in the next few days--I'm hoping to get back in around 120p but may take a while!

what a day for rcg, massive share volume I dont expect this share price to fall back down to 120p now. RCG is in the limelight now at last. 20 million cash just sat in the bank hey, margins improving maybe 3 share price by the end of 07. I still think RCG will be one of the best performing shares of the year. HOLD

I too do not expect to see a drop to 1.20 but you never know.

Personally I am looking at adding at anything under 1.40

capa

With 20 million in the bank i dont expect any shares to be issued to pay for further expanding, there are so many big sells again at the end of day today this is my only worry. Anyone take a guess as to it profits for 2007?

I jumped back in at 148p as the price seemed to be holding up well and there should be some very good press comments in the next few days after results like this.

damn, was going to buy when they dropped to 110p last week but was hoping for a tad more, hindsights a wonderful thing they say, who would have thought the figures would be this good...?

From my friend Donaferentes on the other side:-

Some one above suggested 15% per 6 months growth in EPS. One needs to take into account the increased weighted average number of shares to arrive at a more accurate figure.

For 2006, 19,132k net profits equated to 10.8p fully diluted EPS - weighted average shares in issue during the year 177.15m.

2006H2 net profits were 11,904k. Let's increase them by 15% 2007H1 and 15% 2007H2 = 29,433k total for year.

At the end of the year there are 194.9m shares in issue. Let's guess a further 20m are issued for acquisitions, option exercises and remuneration. The average number of shares in issue during 2007 will be 207,400,000.

So EPS for 2007 on this highly conservative basis will be 14.2p - an increase of 31.4%. On a PE of 15 X 2007 EPS (resulting in a PEG of 0.48) this gives an SP target of 213p. At 20 X 2007 EPS we get a target SP of 284p.

As ever, I would expect results to substantially exceed this modest target. 250p must be readily in our grasp over the next 12 months.

IMHO
WDIK
DYOR

stockdog, you have to take into account a possible fall in earnings this year.

Potentially 2 years before they increase EPS again.........though perhaps just a 1 year period.........

The 12th March Investec Update is here :

http://www.ph.ed.ac.uk/~s9547654/RCGInvestec.pdf



.

PP - why would you imagine a 300% increase last year falls to less than zero this year?

Read the Investec update in the link above, its their forecast, they are the new broker, and its their update after results.............and they consult with their client, RCG.

RCG has an issue, in that earnings are not visible going forward.

The results just gone reported on a "weighted number of shares" and the 2007 figures must report on the full amount of shares in issue (which dilutes earnings), then there is tax and all sorts of things. This will be a period of consolidation on RCG, and it often happens, people follow the growth story, but forget all the other factors.

papel thanks for the investec link, i agree on the tax rate increasing to 7% but investec predictions are far to conservative (and they admit this in their report)along with what was written in the rcg tip in the shares mag about 5 weeks ago. Ok we wont see another 300% increase this year but at least 100% is easily possible with a USA deal.

Managed to get an add in sub 1.40 as hoped.

Broker notes on RCG have consistently been understated, gives them a lot of room to beat market estimates and surprise on the up side. Not a bad thing in my opinion.

capa

well done--I knew I should wait a bit longer to get back in! long term we're in a winner though so a few pence shouldn't matter---I hope.

I totally disagree with investec estimations on sales they are way to low! Rcg only down 2p today and look at the rest of the market.

check out rcg website won some awards...

argos, tax increases from 1.1% last year to 7% this year. Shares in issue goes up from 176m to 195m. This means that RCG must put in 22.5% extra profit before tax before making just the same earnings.

Last year was a record year, heavily bumped up by the launch and take up of the FX notebook, thats not going to be the case this year. Its the trouble with extreme record years, they are a hard act to follow, and this is one problem with RCG, there is very little visibility of future earnings.

Personally I feel Investec is a little conservative, and I see RCG putting in about the same earnings again.......which equates to a zero growth rate, and therefore a PER of about times 8.5.

Very worth a read, Colins visit report on the meeting with RCG :

http://boards.fool.co.uk/Message.asp?mid=10452762

The new CS note is out is seems, with a downgrade from buy to hold.

As soon as I get to see it, and the forecast figures, I'll let you know what they are, but would expect them to be around the levels of the Investec note.

papalPower thanks for the update. I am in the proccess of compairing the ints for 06 and full results. At interim 06 RCg turned over 22.6m (4.8m 2005) which exceeding full revenues in the whole of 2005 by 46%. The best case for investors is this to happen again meaning turnover for 1st half 07 =61.8million (06turnover)*1.46= 90million. When ints for 07 are out we shall see trading is strong though.

argos, a strong H1 07 is being suggested, and I would expect H1 07 to represent half of FY 06.

I would not compare like for like H1 06 and H1 07, as H1 06 was weak (in terms of the FY 06).

RCG are going into china this year, so I cant see earnings being the same. Looking at trade receiveables of 18.522 million and deposits, prepayments and other receivables of 7.6million things look up for Rcg.

PapalPower - 15 Mar 2007 01:57 - 124 of 129

argos, tax increases from 1.1% last year to 7% this year. Shares in issue goes up from 176m to 195m. This means that RCG must put in 22.5% extra profit before tax before making just the same earnings.

Quite right to take account of the tax rise and the dilution but the actual answer is 17.8% not 25% (98.9/93 X 195/176). Don't forget the 7% tax is Investec's worst case scenario - Dr Chu sems to expect a lower rate. Although I wouldn't be surprised to see another 25m shares issued for an acquisition or w/capital needs, which would balance out a lower tax charge.

How can you expect 2007H1 to represent half of 2006. It's got to be at least 2006H2 which was 6.6p v. 4.2p for 2006H1. I can quite imagine net profits rising 15% per half from 2006H2 which takes us to EPS for 2007 on above basis of about 13.8p still 20% ahead of 2006. PE of about 10 an PEG of about 0.5, paying a growing dividend - with much more upside than downside in prospect. Find me another share that fits these criteria so well.

No, you got me wrong there, I said you should compare 07 H1 with 06 H2, as you say.

H1 07 will be good, but I am suspecting a drop off in H2 07 (this due to the FX effect in H2 06, which will rollover into H1 07).

I see H1 07 results being good, but the FY will dissapoint and thats where the correction comes in, which is why Investec and CS are both forecasting lower EPS in 07 than was achieved in 06.......however I think it will not be lower, but will be around the same level (taking into account tax, shares in issue and currency changes).

Each to his own PP. I think same EPS for 2007 as for 2006 will be very disappointing and unlikely imho.

I think the investec note was aimed to stir things up a bit. My predictions are H1 07 profits 16.1million and half 2 07 profits of 23.9million (with China coming into play) includes at 7% tax rate with H1 turnover increasing 20% from 2nd half 06 and half 2 07 turnover increasing 30% from my half 1 07. Total of 40million profit, doubling EPS rate to 20p if no furthers shares are issued. Probably way OTT.
Remember it takes rcg up to 90 days to get the cash for deals done. China only accouted for 3.4% of revenue in 06, I am hopeing this should be 10% by ints and 20% by this time next year shifting away for south east asia+better middle east contribution.

updates on RCG website at the moment include order for BIOmirage contract of US$2.5 million and acceleration of expansion into China!

LONDON (AFX) - RC Group (Holdings) Limited said chairman and CEO Dr Raymond Chu has today purchased 100,000 ordinary shares in the copany at 132.5 pence each and now holds 18,170,000 ordinary shares representing 7.8 pct.

Institutional Buying yesterday from

MERRILL LYNCH INTERNATIONAL INVESTMENT FUNDS - 3.1%

&

BLACKROCK Inc - 5%

Great to see institutional buying that was proabably investec plan to remove small shareholders due to their 48 page negative note! More aqus on the way I expect due to share placing

I hear SCSW has said its time to take profits on RCG and SOLA, could see some downward pressure on both on Tuesday.

SCSW????

http://www.scsw.co.uk

more new products to be launched for Rcg check out their website about the INTEL meeting in china next week!

RCG Mentioned in the FT today:

Small Talk: RC Group bucking the trend among AIM Chinese companies - Investor support for International Biometrics Group

lots of invester support for rcg veron who ever they are have increased stake in rcg to 27%...

Veron's principal Madame Wang (wealthiest woman in Honk Kong) died on April 4. Could put that stake in play or at least in question until the succession is decided.

Rcg having a bad time of late, the Veron thing has upset the share price I am out at the moment, but RCG is still a bargain when veron gets sorted out, anyone have any good news about RCG?

argos7, I have been bearish on RCG since results (the only one at the time) and its been proven to be correct. It has created lots of agression, and to that extent I have stopped posting on the AFN thread, as too many people were becoming unrational and bordering on becoming abusive.

I posted on the TMF CQ thread prior the AGM that I though there was a seller offloading, and this still appears to the the case.

The thing of worry is that yesterday saw them speed up their selling by lowering their price. Look at Leadcom late 2006, if you get a seller who wans out quickly, they can and sometime do "dump" at any price, and this can take the SP crashing down with it.

I hope for RCG holders sakes that a seller like Leadcom had last year, is not going to give them the same frustration now.

Papal Power my stop loss in RCg was hit yesterday with the big sell of in the afternoon. I have been concerned for months that the fx laptop (30% sells) would not sell because it only runs on win xp not vista yet, they say a vista laptop will launch 2nd half! Head and shoulders top forming.........

argos, the thing that struck me, and that every poster on ADVFN seemed to ignore, was the "Statement re Share Price Movement".

At no time did Chu say "no reason for the fall"..........all they said was about the Veron episode.

If you have rose tinted specs on you miss it. If your not wearing them you see that they are clearly saying what the reason is for the fall. Obviously, IMO, some or a fund manager was really upset at the lack of transparancy, and told Chu where to go IMO, and started dumping the stock.

However, the bulls were ignoring this and saying that at the AGM Chu would make a wonderful update and all would be good and ahead of forecast then..........they clearly made people miss the message, the message was the reason for the fall was the Veron goings on..........and that is why that point was clarified in the movement RNS.

Thats what it looks like to me, as to why the seller is dumping.

IMO, DYOR !!

agree with what you said papal power. Once they have stopped dumping the stock and if trading is the same as last year if not better there should be some bargain prices b4 the ints in september.. I have taken my profit glad I put my stop loss in, and have learn a lesson! Take a guess of how fare rcg will fall?

argos, no idea if it will stay where it is, fall more, or not. Its already fallen over 30% from results. It might fall 50%, it all depends on the seller.

Presently the buying power of the bulls is being eroded, this is the way all sellers work, they start to offload stock, and the bulls buy, the offload more and the bulls buys more, when they start to dry up they move the price down, and the bulls see it as cheap and buy more.........and so on the cycle goes. How low it goes depends on two things, what price buyers are willing to pay for volume, and how low the seller is willing to go to dump stock.

Fundamentals and charts mean nothing when a seller is dumping.

Its nasty when it happens, Leadcom went through this late in 2006.

I hope for RCG holders that it does not dip down too far and for too long, but cannot say myself where its going now, that depends in the highest degree upon the seller.

Papalpower - interested in your view. Do you imagine that when the seller stops, a floor will be set and then we'll start the climb back up to nearer the placing value (over how long?), or do you see this process as causing a longer lasting setback to the SP?

Once the seller clears the price should then come back, it will be weaker, but it will come back upwards.

I would watch 118p as a key level, the seller in recent past has turned on at 118p and off at 104p.......so the question will be when it rises, will they come back at around 118p again ?

I would not like to make any predictions, however with this much stock now out in the open, it should cause a general weakening of the price.

looks like RCG has hit its support level at 99p to 1. On a PE of 11 ish with new shares taken into account!

Papalpower - thanks. Your 118p sell trigger would fit with the formation of a RHS of an inverted
head and shoulders, coming back down to 104, before heading back up and hopefully past 118 to nearer 136 (118 + 118-100) - if we can clear the seller in one more cycle.

LONDON (Thomson Financial) - Servocell Group PLC said RCG Holdings Ltd, a biometric and radio-frequency identification (RFID) security systems firm, has joined its ProActive Partnership programme. Under the deal, RCG's fingerprint access/control device technologies will potentially be used in its forthcoming range of finished locks.

Financial details of the deal were not disclosed.

market seems to keep on testing the bottom for this niffy little biometrics play. As a proud holder from march 2005 I have topped up numerous times but am waiting for the second wave.....250p by end of year!!!!

seems to be buying levels at the moment, but my problem with rcg is will people buy an fx laptop with only windows xp on not vista, i have been asking myself this question for months, am out at the moment!

Posistive update:

RCG Holdings Limited
31 May 2007


Press Release 31 May 2007


RCG Holdings Limited

('RCG' or 'the Group')

Trading Update

Strategic partnerships signed with Digital China and EuroAsia

RCG Holdings Limited (AIM: RCG), a leading global provider of integrated
biometrics and RFID security solutions, is pleased to give the following
positive update for the Group's financial performance in the first half of the
2007 financial year.

The Group has experienced a strong start to this financial year. This is
attributable to the successful launch of several of the Group's products,
including the launch of FX Secure Key into the Chinese consumer market, and the
launch of BioMirage into the South East Asian and Chinese consumer markets. RCG
has also successfully entered into potentially lucrative joint venture and
partnership agreements in the Peoples Republic of China ('PRC') and South East
Asia to drive future growth.

On 30 March 2007 the Group stated that the net proceeds of the Placing would
facilitate RCG's growth and acquisition strategy which entailed:

strengthening the Group's market position through acquisition;
developing strategic partnerships and/or Joint Venture arrangements in
the Middle East and Greater China;
establishing a regional headquarters in Malaysia; and
funding R&D and working capital to enable the Company to customise its
existing products and solutions to meet market demand.

The Group is pleased to report that, so far, it has successfully completed three
of these strategic objectives since the placing was announced on 30 March 2007.
The Group is confident of making suitable acquisitions in the short to mid-term.

Joint Venture and Partnership

The Board is delighted to announce the formation of a new joint venture with
Digital China for the exclusive provision of security applications relating to
biometric, RFID and other technologies as well as payment gateway solutions to
banks in the PRC. Digital China offers credit card services and payment gateway
solutions, facilitating and processing data related to credit card transactions
for the banking and government sectors. This is coupled with personalised
security services to ensure that consumers' personal data is handled and
transmitted securely during any given transaction. RCG will benefit from this
agreement by leveraging Digital China's client base and in being the preferred
solutions provider. Under the joint venture agreement, RCG will provide US$5-6
million of capital which equates to 10 per cent. of capital injection with the
remaining 90 per cent. coming from Digital China and its senior management.

The Group is also pleased to announce that it has agreed a partnership
arrangement with EuroAsia, an equipment supplier and installation service
provider with networks covering 30 Chinese provinces including Hong Kong. Under
the partnership agreement, EuroAsia has agreed to adopt RCG's biometric products
throughout their existing offices across the PRC.

Both, the joint venture and partnership agreements represent exciting
opportunities and are expected to make a significant contribution to RCG's
revenues. We will update the market on detailed success in due course.

In addition, the Group's proactive marketing campaign has also enhanced RCG's
strategic development in the PRC market. RCG is the Platinum Sponsor for the
RFID China Promotion, a high-profile five-month nationwide seminar and marketing
tour which is hosted by the CIITA RFID China Alliance. The tour takes place
from May to September 2007 and spans 14 major cities across China. The event
serves as an interactive platform for intelligence sharing and networking with
governmental bodies and partners in the RFID industry.

Commenting on the joint venture agreement with Digital China and the partnership
with EuroAsia, Dr Raymond Chu, CEO and Chairman of RCG Holdings Limited, said:
'Our joint venture with Digital China will bring the Group recurring revenues
from the sale of hardware and payment and trading platform services provided to
the major banks. This is an excellent opportunity for RCG to gain access to the
major banks in the PRC in providing other forms of security solutions.
Additionally, our strategic partnership with EuroAsia will significantly extend
RCG's reach into the rapidly expanding Chinese marketplace for biometric and
RFID solutions.'

Sums up my feelings, why for the first time (ever ?) is there no reference to performance against forecasts ?????
I do not hold, just watch :)

http://investorschamp.blogspot.com/2007/06/rc-group-is-it-all-hot-air-or-is-their.html

Has anyone had a look at UVEL?

I hear the write up in SCSW was not very exciting.

Along the lines of RCG being 30% ahead of forecasts in H1 (possibly due to a few orders being moved forward into H1 that were due in H2 before). If this is true it would affirm an acute awareness over the lack of performance over 2006 figures, and the ongoing effort to try to ramp things up to get better H1 figures, and hope something fills the gap in H2 of what you've moved forward into H1.

Personally I would not be impressed if this is true.

Broker forecast now of 10p for the FY, based upon an 8% tax rate.

SCSW say they are glad they said sell half in to the 130's and retain a "hold the rest" rating.

Investec figures on the 20th July are as follows :

Historic 2006 EPS 10.8p

Forecast for current year

2007 PTP 24.09m
2007 EPS 9.99p
2007 DIV 0.59p

Forecast for 2008

2008 PTP 25.78m
2008 EPS 10.21p
2008 DIV 0.66p

I have taken a shorter term trading position here, on todays news of results later this month.

Edison note out today.

DCF valuation of 141p - they note the problem of Nina Wang and suggest this is the main cause of the present discount.

http://www.edisoninvestmentresearch.co.uk/

.

Come on RCG, lets start that pre-interims rally going.

14 trading days to interims, go to start to move soon, I hope :)

Well, looks like its started, +6.9% today, and a strong buyer putting 15K's on the bid side.

Of late the seller has not been filling them, so it looks like potentially the seller is either out, or waiting and allowing a rise into interims now.

Interims will be 30th August (and the guidance is "significantly ahead" ref the trading update).

Starting to move back up again now, ahead of interims (due Thursday 30th August) which are to be ""significantly ahead" we were told in the last teading update.

Can it break back up through 100p on the back of the results ?

Cash in the bank is large, to say the least, and if you remove cash from the market cap, they now have an EV PER of around times 6, might even be down to around times 5 now.

Break though 90p bid price........could be the buy signal for next weeks results.

607K WT trade and KBC moved off of the offer.

It might now be set for a good run into results, lets see how it moves with buys now, if the KBC are done selling (with the reporting of the 607K WT) we might see a decent move up through 100p into and after results on next Thursday.

This is a bit from the recent broker update after the H1 trading statement, all will be revealed come results on the 30th Aug :

RCG Buy 88p-Target Price 1.50

Event: RC Group has issued a positive H107 trading statement advising that results
will be ahead of market expectations. Both software and hardware sales have
contributed to the outperformance. Solution sales have been weak, but this
remains a much smaller portion of the business. Gross margins are also ahead
of expectations but some of this benefit has been absorbed by an increased
ramp-up in operational costs. This underpins the decision to move back office
operations to Malaysia.

Impact:
We expect H1 sales to be materially ahead (+30%) of our HK$423m forecast.
We have not published a full P&L interim forecast. However the company has
indicated that it is not altering its revenue expectation for H207 as this stage,
opting to take a more prudent stance. We have increased our FY07 HK$ sales
and PBT forecast by 15.8% and 13.5%, with HK$ EPS moving up 13.5%. The
weakening of the HK$ has however muted some of this upgrade with our
sterling 07 EPS forecast moving up 8.6%. We detail these changes overleaf.
Recommendation:
There is clearly considerable momentum behind the business and the 07 PE of
8.8x is far too low in our view. We see material upside and reiterate our Buy.

Headline Numbers Excellent sales traction
The H1 headline trading numbers look to be significantly ahead of our and
market estimates. We had not previously published a full H107 P&L forecast.
We expect the results to be in excess of 30% ahead of the HK$423m we had
forecast. Although gross margins are also set to be ahead of expectations, an
increase in operational costs is likely to absorb a lot of this.
The company has decided to maintain its sales expectation for H207 at current
levels. As such we were not prompted to follow through the significant H107
outperformance into H207E when constructing our new forecasts.
Nevertheless, as we highlight below, the strong H107 trading still leads to a
material FY07 upgrade. We also choose to move up our FY08 (and FY09)
forecasts, considering the increased traction the business is clearly enjoying.

thank you.

.

.

Vista logon for Fx Series announced today:

http://www.rcg.tv/press/business/280807.html

Dr. Raymond Chu, CEO and Chairman of RCG, commented: We are delighted with the launch of this product, which captures the latest market trends in mobile security running on the Microsoft Window Vista platform. In a recent announcement Microsoft stated that it has shipped 60 million copies of Microsoft Windows Vista to date and also implied that there is a growing demand for Vista compatible applications. We are confident of making substantial and sustainable developments within this market sector in the near future.

.

.

A strong Dow rally.

http://www.investegate.co.uk/Article.aspx?id=200708300701129730C

RCG Holdings Limited
30 August 2007

RCG Holdings Limited
('RCG' or 'the Group')

Interim Results

Continued strong revenue growth supported by
strategic geographical expansion and innovative applications

RCG Holdings Limited (AIM:RCG), a leading global provider of integrated
biometrics and RFID security solutions, today announces its Interim Results for
the six months to 30 June 2007.

The Group has outperformed and has built a solid foundation for sustainable
rapid growth during the second half of 2007, continuing through to 2008.

Financial Highlights

- 71% revenue growth to 38.7 million (H1 2006: 22.6 million) driven by an
increase in hardware sales (up 61%) and software sales (up 130%)

- Profit before tax increased to 12.1 million on the back of stronger
overall gross margin of 49% (2006 interim PBT: 6.3 million; gross profit
margin: 40%)

- EPS increased by 43% as compared to the same period in 2006, despite
dilution from the placing


Operational Highlights

- Successful innovative product launches of BioMirage and FxSecure Key
- Strengthened presence in Southeast Asia, Middle East and Greater China,
with the commission of RCG's Malaysian regional head office and the opening
of the Thailand office
- New niche RFID applications delivered in the high value areas of
anti-counterfeiting and financial industries
- Secured important channels into the People's Republic of China mass market
through continued collaboration with Digital China, a distribution
relationship with EuroAsia as distributor and several technological
alliances of the Group's biometric products
- Strengthened management with the appointment of KC Chong as the Group Chief Financial Officer.

Commenting on the results, Dr. Raymond Chu, Chairman and Chief Executive
Officer, stated: 'These results represent a significant outperformance over the
same period last year and we are extremely pleased with RCG's continued strong
progress. We believe that our technological expertise and geographical market
presence makes us the leading provider of integrated solutions for biometrics
and RFID within the industry. The steady growth of RCG's client base rapidly
improves the Group's bottom line.

'The Group will maintain its aggressive growth strategy across all business
divisions for the second half of 2007 with a focus on driving organic growth and
delivering shareholder value. Based on RCG's continued development we look with
enthusiasm into the second half of 2007.'

.

RCG does look undervalued, however, there are other things to consider which may effect the SP. I put this on AFN, so will share it here too.


The bear case is not so simplistic and its not just the Wang issue it is a combination of :

a/ Wang issue - this will be highly off putting to any potential buyer of large quantity.

b/ Sentiment - its in a clear downtrend.

c/ Visibility of earnings - basically non-existant, most earnings are derived from new products and its a continuous process, which leaves the door open at any time for a problem (although so far none have happened).

d/ Expansion into China - those who know China know the only way you expand into China is spend spend spend, and offer very good promotional payment and commission deals to agents. China also has many local companies producing lots of (but not all) the same goods, which means margins are not going to be impressive to start with once China becomes a larger chunk of revenue.

e/ Tax rising, whilst they are trying their best to evade full tax by moving around here there and everywhere with different subsidiaries etc.., at some stage it will catch up with them and tax rates will keep on rising upwards until they are at full tax rate.

f/ Throw away comment in the last results about having spent 70% of the placing money to date (30th August) on various things, but with no details.

g/ HK$ weakness, owing to the "weighted average" system that RCG use, their last results have not reflected the full HK$ weakness, and this weighting system will mean their results will continue to use a weaker and weaker HK$ even 6 months after the currency itself has done an about turn. Weighting might help now, but it kicks you in the teeth once later.

h/ Weighted average number of shares in issue, again RCG report EPS based on "weighted average" - so again with the placing this year, the full force of that will only be represented in 2008 figures, but for sure the 2008 FY figures will see the weighting move to a higher number of shares in issue.


For example, if you put interims into prelims, then the interim 5.6p EPS after putting in a weaker HK$, and putting in higher tax, and putting in more shares in issue - it might only contribute for example 4.9p to FY figures........may be less than that.

If you go to the extreme, and use non-weighted values but actual values then re-working the interim figures you get :

PreTP 185.739m HK$
Tax @ 7% = 13m HK$
Post Tax Profit = 172.8m HK$

Shares in issue 232,267,677

EPS in HK$ = 74.4 cents
X rate = 15.89
EPS in pence = 4.68p


Will there be any exceptionals on the prelims ? Whats the outlook for 2008 ? Will there be a big push into China which may prove disasterous on margins ? How high is the R&D spend in H2 ? How much cash has been spent ? How much of the revenue is recurring ? Why has the company maintained silence since interims ? Who has been selling in such volume since 150p downwards ? Why did the directors sell so much stock in this years placing if they knew that 2007 and 2008 would be good years ? If a new shareholder acquires a majority stake (as in the Wang issue) must they launch a bid for the company, or sell their stock holding downwards ? (Not the same rules as an IPO large holder).


There are many questions that can be asked, but the key event is H2 performance, for more reasons that just one. Way back in my TMF post of March this year I drew attention to H2 as a possible "hiccup" event for RCG, so will H2 be a hiccup or not ?

Many thanks for the above, PP. I've been keeping an eye on RCG for some time: did very well with this, having bought shares last year and then sold when Ms Wang died earlier this year. Will need to do some more research.

What has RCG got to do to move there SP, there only seems to be good news , last results were fab, loads of cash and great products.
I,ve topped up with 20k @68p am holding 50k in total

RNS re acquisition today.


For full text click here


Includes the following paragraph:
"With upcoming large-scale events such as the 2008 Beijing Olympics Games and the
2010 World Expo in Shanghai together with the booming sports and entertainment
industries, China is entering an exciting phase of rapid growth and increasing
demand for stadium security, ticket anti-counterfeiting, crowd handling and
point-of-sale automation. The opening of this vertical industry provides RCG
with significant opportunities for value creation."

Toya, quite expensive, given the price paid. It was a good thing to do though. However, the cash burn rate is going to be a concern come prelims imv, the question being just how much cash will have reduced from interims to prelims. If people sense a placing coming in say 18 months time, its going to limit the performance of the shares, imv.

PP: I agree and just keep this one on my watchlist. Haven't (yet) got back into RCG since it plummeted below 130p as it seems to lack the will to head back up there. Pity really - I was very excited about the company this time last year. Just goes to illustrate that holding on long-term regardless is not always the best policy.

Just put this post on AFN, so a copy here for info :


"""""""""""p0lzeath, thats questionable.

Did they put a foot wrong ? I would say yes in moving nearly all their production into China.

Earlier this year China made changes to the tax laws, this affected low tech items in the most, and a hit was seen on numerous items, particularly export. Just last week China has introduced new tax laws again, particularly for export. This time it will effect Hi Tech items. It could therefore be that in 2008 you'll see RCG take a big hit in terms of increasing tax levels from all their China subisdiaries. Certainly in 2008 their margins will get hit due to these China tax changes imv.

Perhaps this now known impending change is the reason why they have done an acquisition at that price. It was said they would not pay over price, and yet they have paid a very high price for this company. Why ?

The coming 1st Jan 2008 China Labour Law changes are also going to hit operating costs in China, and certainly going to hit margins of many many companies.

If China continues on this "normalisation" process to bring everything into line with 1st world countries, then a China that is presently no longer cheap, will become even less cheap. Its going to happen, everyone knows that.

The pending effects of the Labour Law changes was a known item going forward and would have been budgeted for, however these new tax changes will not have been. Their implications for 2008 and 2009 is what you should be looking out for.

In terms of cash, if 75% of the placing money was spent by 30th August 2007 it looks like nearly 100% will be spent by now. They have their cash apart from those placing funds, but it looks like "cash" will take a whopping great hit in H2.

You can dress that up with vast revenue growth and earnings of 13p - but if cash goes down by a big lump, then fear will grow that a placing is getting nearer, no need for "12 to 18 months" two months ago starts wearing thin should by March 08 people see a big drop in cash.

Fast growth needs cash, lots of it, and that is not a story the markets presently want to hear, which is obvious by the way many shares are reacting presently. Are many feeling confused as to why this share is doing this, but that share is doing that.............thats because the rules of the game in the present market have changed, and if you don't change with sentiment you'll be sat on falling shares.

However its good to see them finally admit to doing something with the cash and telling everyone what it is, as opposed to the 30th Aug statement saying they have spent 75% of the placing funds to that date and not giving any detail as to what it was spent on apart from a "broad array of things".

Might be a good day for a trading update, so those looking for a spike to sell into will be hoping its released later today no doubt :) """"""

Thanks PP - good analysis, as always :)

RCG announce trading update:

"RCG's business activities during the second six months period ending 31 December
2007 remain robust and strong, and accordingly, the Group expects to report full
year figures that are significantly ahead of market expectations. The Group
expects to release its full year audited numbers on or before the final week of
February 2008.

The Group is pleased to announce that its ongoing organic growth remains strong.
In the Group's 2007 interim report, RCG announced its intention to strengthen
its technological innovation, to penetrate new and high value vertical
industries and to sustain its geographical expansion. The Company is pleased to
report that all three strategies remain on track."

Full RNS here:

RCG Trading Update

A post I put on AFN, for reference here :



TTB - a valid point, and for those who want facts then please revert to the interims statement.

http://www.investegate.co.uk/Article.aspx?id=200708300701129730C

\"..........In March 2007, RCG successfully placed a total of 33,333,333 Ordinary Shares of par HK$0.01 each at 131 pence per share, raising £41.7 million (net). The net proceeds will be used for mergers and acquisitions, joint ventures, research and development, establishment of regional headquarters in Malaysia as well as for working capital purposes. To date, a total of 65-70% has already been spent on various intended purposes........

So they have been (up to 30th August) aggresively spending the placing cash, this cannot be denied by any bull, as the company, as quoted above, have eagerly told everyone they have spent up to 70% of it, and on \"various items\".

They have now also spent money on the latest acquisition, another near 10m GBP. Therefore are all the placing monies now spent when you take the acquisition in together with the interim statement that up to the date the statement was made (being 30th Aug having spent 70% - not to be confused with the cash reported at interims which was up to 30th June only and did not reflect any spend from 30th June to 30th Aug interim release date).


What it all boils down to perhaps is a simple question :

1/ Are RCG all about delivering shareholder value ?

OR

2/ Are RCG all about growing the company up and up at massive, but highly cash consuming, rates.


If Dr Chu and co are going to try to expand like crazy for 5 years, then they are going to needs lots of dilutive cash, and this is not going to deliver shareholder value in this term, its going to deliver lots of growth, but shareholders will be playing a supporting role. Then in a few years time, the shareholders will benefit from ending the supporting role and state to have the end prize delivered to them, provided the money is well spent, the markets of RCG do not collapse etc...

Therefore, there could be plenty of people who are selling down their holdings, simply as the time frames are too long now, and the company is going to go through a period of massive growth, but one that is going to consume lots of cash.

We all know Chu is looking at many acquisitions, this is going to need more and more money.


So perhaps cash is a key issue, and the question is, are RCG going to needs lots of it to grow repidly (eg no short to mid term deliverance of value to shareholders due to continual dilution of the growing earnings) - or will RCG and Chu slow the growth and start to deliver big divi\'s ?

I think the massive director selling into the recent placing gives the answer, and its why since then there has been lots and lots of selling since, and why the SP has crashed down from 150p levels.

Most people, apart from the blind bulls, and the short term traders ramping to get their quick profit and then sell, can see this, and those looking ahead can see a growing company, one going to grow very quickly, but one that is going to perhaps keep coming back for more and more cash.

All imo of course.



---------------

TaurusTheBear - 12 Dec\'07 - 13:15 - 13514 of 13554

Wowzers - read my lips: I own shares in RCG, ergo I am a BULL. The point about the cash is that no-one really knows:-

(1) How fast it is being used
(2) How long it will last
(3) What exactly it is earmarked for
(4) Whether RCG just goes to the market for cash every year

Above all, it has assumed a status amongst the twittering classes far beyond it\'s relative importance! :0)

Interesting points PP - thanks.

Since I've been bearish on RCG of late (and correctly down from the 150's), here is a post I put on ADVFN, as the results near.


"""It will be interesting to see if the "half on half" reduction in growth is continuing.

Lets not forget, this is not a business with loads of recurring revenues, its a business which needs to spend buckets on R&D, and have an ever new list of products to sell. Comparing annual figures is very misleading, imv, and you can only, in a case of a company like this, compare consecutive half years, and not annual half years, or Year on Year figures.........the business is about continual change and evolution of the product range, and must be judged on "Half Year on consecutive Half Year" figures.

EG, H2 07 compare to H1 08 and then H1 08 compareto H2 08.

Do not IMV compare H1 07 to H1 08, or FY 07 to FY 08, that can mislead. There is no mistake when you compare the consecutive half years.

The interest therefore ahead of us all is what are the H2 08 figures like on their own.

As a reminder the growth had stopped last half year, (the comparison done at the exchange rates at that time, not updated to todays rates) :


Turnover

2006 H2 = M 39.2

2007 H1 = M 38.6

Profit after Tax

2006 H2 = M 13.4

2007 H1 = M 12.1


Obviously the "spin" merchants were pumping the growth on H1 06 - but thats not really relative in the case of a company like RCG. So, the interest with the RCG results (apart from cash levels and cash spend) will be not the FY06 figures compared to FY 07 (as H1 06 was crap in relative terms), but what is H2 07 like compared to H1 07. Thats the key, and hopefully for RCG holders they will at least show some growth again, and not declines in both turnover and PBT."""

PP As a shareholder the important stats are earnings per share and dividend per share on a annualised basis not half yearly. Lets hope to see a significant increase in final dividend as they dion't seem inclined to pay an interim.

As results near, need to keep an eye on certain metrics with RCG, we have already seen for H2 06 compared to H1 07 a fall in revenue and profit after tax.

Just some rough calcs so if any mistakes please accept my apologies......

Will have to quickly work out what the H2 07 split is from the Preliminary figures.

RCG is "allegedly" very weighted to H2, and so there has to be growth over H1. Any failing to see a substantial positive difference over H1 would be quite bad imv, and I seriously cannot see them not putting in another half of negative growth (as was from H2 06 to H1 07), there has to be growth this time around, but the question is, is it big ?

If their talk of substantial outperformance is correct, you'd expect them to do at over 100M turnover in H2 alone, and 19.1M Profit After Tax for H2 alone. That would be considered line with the gains acheived in 2006 H1 to H2........lets see if they do "in line with 2006" come prelims, or are "significantly ahead".



Turnover

2006 H2 ...........................M 39.2 Goes DOWN to

2007 H1............................M 38.6

2007 H2............................M ?????? (Target 100M)


Profit after Tax

2006 H2............................M 13.4 Goes DOWN to

2007 H1............................M 12.1

2007 H2............................M ?????? (Target 19.1M)


After their fund raising lets see cash in bank too :

2007 H1............................M 56.8

2007 H2............................M ??????




(Reference H1 06 to H2 06 saw growth of revenue by a factor of 2.8, and growth in Profit After Tax by a factor of 1.58. These have been factored in above, to see if they can match 2006 H1 to H2 ratios).

The Profit After Tax figures are skewed, this is due to taxation in various countries, which means that interims look weird, but prelims tell the true story as then all tax from all regions for the whole period is taken into account (Its why you'll see big revenue gains from prelims to interim, but smaller After Tax Profit gains).

Should they perform "in line with 2006 HY to FY gains" you should see 12.1M + 19.1M = FY Profit After Tax of 31.2M, equating to EPS of 13.4p.

With such performance, you'd expect, so many say, cash in the bank to be going upwards - so lets see if it rises, or falls come full year end reporting.

PP as I said earlier all that matters for shareholders is a significant increase in earnings per share and a substantial increase in dividend. If these don't materalise then the shares should be dumped.

Tipped by SCSW it seems, according to posts on AFN. That explains to me the rise in price over the last week does it not.

Funny how each of the buy tips for RCG is preceeded by some buying and a rise in the SP. The SP chart says it all really.....up it goes...must be a buy tip coming up...........

Those that "just happened to purchase" in ahead of the SCSW buy tip, will no doubt be the ones dumping out just before or just after the results, provided the price spikes up enough to make them a trading profit.

Good results... market drop, will never fully understand this market, slight drop in dividend, but acquisitions on the way...!

Shareholders expect to share in the profits ,reduction in dividend very negative move suggests cash problems. Overhang of shares following death of Madam Wang not resolved. Further acquisitions may place more stress on cash resources in the short term.imho.

Euhhh, you could be right halifax, Kyoto says the market cap is 190 million, with the profits made and one or two possible acquisitions to be made on the agenda, this could still be undervalued, this does seem to be a good company though, those shareholders like myself will need a little more patience I presume !

Further to my previous post, I hope that there will not be a fund raising exercise coming !

Might prove difficult to raise funds in this market as their last placing was if I remember correctly done at a much higher level than the present sp.

Well, didn't make much on that short, the question remains now, with tax year end selling and a boring bad summer ahead, will it just trickle down now given no major news ahead ?

Cash, I look at it this way, they start 2007 with 20.8m in the bank.

They raised by new shares 43.4m


After all was said and done, with their business for the year, they ended up with 41.8m in the bank.

So cash at start, + business operation, + cash from shares = just +23.4m

And new shares = 43.4m, so did they spend lots of cash.........looks like it.

******************

Tax = Look at the tax paid (bugger all), lots of tax avoidance gone on there to bump up the EPS figure, imagine if these results were subject to 25% tax rates, EPS would be near 25% lower. They managed to get away with tax this year, will they next ? and what about 2009, and 2010 ?

*****************

Can't be bothered to go into too much detail, most peeved actually we did not get any bigger spike to short - but there you go, this is life.

Well, the company thinks cash is an issue and CUTS the dividend to preserve cash, PI's think its no problem, the broker is spouting about increases in cash ahead, even when they know that acquisitons are very likely.

Does tend to say lots of people have not got a clue whats going on, so who is right and who is wrong ? I would guess the company are correct and thats why the cut the dividend, for if they do not know what their plans are going forward, well, God help RCG shareholders.

Might all be part of the game imo, take this action now, prepare shareholders for "tight cash" - spend lots on acquisitions, and then make a cash call (as I have been saying for a long time, and now "marben100" seems to think might happen too).

Anyone considered they might "spend through acquisition" their way to being tight on cash as a potential scenario, and then ask the HK buddies for some more money, for some cheap shares...... ;)

I'd have a good guess as my own opinion that if a placing does come in the coming 8 to 18 months, its will be mostly funded by HK cash.......again, and this would leave the company basically back under the control of a few HK people with all those extra shares sloshing around, and they could then take it private very cheaply, and then list it somewhere else for massive profits - thanks AIM - served your purpose..........kind of thing.

Thanks PP. It's all looking too messy and I've not come back into this, and probably won't do so again.

Outlook not so bright for techy gadgets in the region, and in China...... ?


http://www.forbes.com/home/columnists/global/2008/0324/030.html

..............
Just take a look at recent reports by Japan Inc.s big exporters. Canon, the worlds biggest digital camera maker, warned that earnings this year will fall short of market expectations. Sonys 5% operating margin goal was also recently revised downward. So what does all this mean for investors in the Asia-Pacific region?

First, avoid the large exporters of consumer products such as the already mentioned Sony and Canon, which are being squeezed by lower global demand and higher input and component prices. A stronger yen has not helped either..................

PP best ignored - EK lackey but a great contrarian indicator.

Best ignored unless you want to lose your shirt!!

On Line Limits :

BUY 100K @ 58.93p

SELL 2.5K @ 57.5p (Down from 50K this morning)



Its so cheap and such a bargain someone is willing to sell you 100K at under the offer price.......yeah.....bargain....what do they know ??

Looking extremely weak now............down to just 2.5K for sell volume on line.

Perhaps those director sells at circa 130p levels were very well timed, perhaps they had a crystal ball to the future..........

They always say don't they, if the directors sell, sell too..............advice that should have been noted here perhaps. Bought at 10p sold straight into the placing for big profits........wonder why if the future was so bright ?????


http://www.investegate.co.uk/Article.aspx?id=200703300701420471U

Director/Senior Exercise price No. of options exercised and sold

Raymond Chu 10p 2,350,000
Anita Chau 10p 1,000,000
Lawrence Ying 10p 360,000
Maggie Tam 10p 360,000



On Line Limits falling down yet more :

BUY 100K @ 56p

SELL 2.5K @ 55p

PP posts with manaical zeal on at least 2 boards, one of which seriously regards him as a pest.

A pest ?

Well, a pest whose called these Chinese related stocks completely correct and down.........

LOL.

Looking very weak :


On Line Limits now :

BUY 100K @ 50.2p

SELL 2.5K @ 49p

Your bosses will be buying in soon and you will have to move on to get your beer money.

sorry pp but can't let you get away with the rubbish that emanates from you. All aim and small stocks, not just this one, are being hammered th' margin calls and general panic most of which bears little resemblance to what is going on at the company. If you look at the greaest % loses today on 'market scan' you'll see what I mean. This is not an RCG problem alone. When all this is over a few companies may inded go bankcrupt but most will survive and when we enter a bull phase again, you like everybody else will be buying in pushing the share price into the sky.

ps sorry about the spelling, my hands are shaking too much thr' market fear lol

PP I am worried about your state of mind. Over on a rival site you make over 200 posts a day, host 90 threads and regularly post on 5 different sites. You have set up duplicate threads for Chinese stocks, wiped many of your own posts (to eradicate any possiblility of criticism)and constantly change your mind. This behaviour would seem to be obsessional, manic and delusional. Not to mention the fact that you need to get a life.

pp is my hero ok. You can get lost, zscrooge

zscrooge, I am more worried about those people who now follow and post about posters, as opposed to discussing stocks and shares and markets and sentiment.

Although it is possible to understand that the present market falls have pushed some into financial oblivion, and with that perhaps immense personal stress, which is perhaps making them turn their "anger" on to BB posters.

Sad, but true.

As it seems "zscrooge" is going to be "stalking" me with abusive posts etc... I will add them to the "Squelch" facility. I really do not want the threads to fill up with nonsense posts by zscrooge.

What that means is I will be unable to read their posts.....so don't expect any responses to anything they post in future. If you find they are still filling the boards with nonsense posts, I would suggest emailed Moneyam support and complaining.

If anyone wishes to "Squelch" this poster then click on the link below, and add their name to your "Squelch" list.

http://www.moneyam.com/InvestorsRoom/squelch.php

Well...I decided to sell my RCG holding last week at a loss.....I might have made a mistake....but for the moment I'm out of this...because there's better value elsewhere.

PP Not abusive, just facts.

Thanks for your concern PP but I have not lost a cent and have no anger at all. I make it my business not to swim with sharks. With any luck, your kind of antics will keep the pi out of markets altogether so that the pump n dumpers/bashers can feed off themselves.

Of course, the recent credit crisis may have a nice side-effect in tighter regulation of those nasty insider dealing circles.

If you look at the charts, historically RCG is one of those shares affected by "sell in May" syndrome.

It has falls from May to August for the past 2 years. A betting man would start buying in August some RCG hoping for a repeat of the past, however, they would have sold already before the summer doldrums affect the SP.




.

Excellent company, well run, loads of profit, share buy backs in recent days, so as soon as the markets recover some sanity this stock will soar and even more so when Nina Wang's estate is sorted.

You hope.

The trouble is of course whether a company like this with such limited earnings visibilty going forward can keep coming up with the growth.

One slip, one bad product and things fall apart quite fast.

Which is why those saying this is a good LTBH stock, and ignoring the inherent risks of a tech stock in the 21st century.

Things can change at lightening speed.

Of course things can change I accept that. With the markets the way they are if you come out with any sort of profit warning then the sp is down 30% + straight away.

If you accept though that we are about to bottom out in this bear market and I think you can actually feel that as the shorts start to disappear, hence we are slowly about to enter another bull phase, then this company trades on about 4.5x last years earnings so I reckon there are a couple of big profit warnings already priced in.

A bull market in the summer ? No.....

Its quite normal for April to be strong, and then "sell in May" to hit everything and send everyone into the summer doldrums before "St Ledgers day"..........

Yes I know the phrase but you know as well as I do that that doesn't always happen.

Don't be misguided by history or you might get a nasty shock.

The credit crisis continues, all indicator are saying the US is heading into recession.........is there really anything to brighten the summer up ?

The USA may well be in recession but that is not the point.

History shows us that the markets hate uncertainty. The lowest point of the market in 03? was the day b4 the Iraqi war. Once the war started the market recovered because it knew where it was then. Likewise with a recession.

If you look at a 10yr FTSE 100 chart, the bull market of 00 was rapid with companies trading on rediculous p/e ratios. Thus the drop after was also rapid and symetrical. The last bull market from 03 was slow and steady and thus much stronger.

Last summer I remember Tom Huggard saying we were well overdue a bear market but didn't know where it was coming from as nobody seemed to predict the credit crunch. If I recollect properly he reckoned the bear market would be quick but painful which is exactly what has happened. I may well be wrong but for what it is worth I think we will correct soon and then the markets will recover (I hope!! lol)

Last bear market was 3 years long..........will this one be the same (eg ending around late 2009 or 2010 ?)

I'm with DD here, think lot of problems already priced in, but still lots of uncertainty out there, however if the rate cuts get things moving again later in the year i expect the market to reflect its position looking ahead...

I do not see it.

AIM and Small caps are still being sold off..........which means money is leaving these markets.

Large caps are yet to fall, and the money will move into these "safer" stocks first.

Only when these large caps are again fully valued, will potentially money go back into AIM and small caps.

That could be a long way away as yet.

Large caps are yet to fall??

Where have you been looking?

Only big miners have kept going and they had a sell off last week.

Just about all other stocks are 30-50% lower - banks/builders/etc etc

Aim stocks have have been smashed. If you look at the popular ones eg Tan;Sln;Cfm;Avm;Vyke;Lng, they do look as though they have stabilised.

Methinks you're tongue is firmly planted in your cheeks ...

I tell you what PP.

If you are so confident that the market will keep falling, tell me what you are short or going short in and we'll check it in 3 months.

If yo're not prepared to say, then I can only assume you are not serious.

I see perhaps a "band aid" being applied to get the US through elections in Nov, but after that the wounds should bleed heavily, so there is a very good chance for a brief relief rally later in the year, but then it will be very heavily sold into Spring 09 IMO.

Ahh so you do think the market is going to rally this year.

The truth comes out lol

2009 and after that, I've no idea. We'll have to discuss it later in the year.

.. and now the Directors buy.

..although to be fair so they did at Wng at around 110p and look where it is now!

Very small director buys, given they sold millions of pounds worth at 131p last year.

true, can't argue with that..

Very pretty PP as is the news this morning

1+ here we come ..... pleeaseee

Minor news really, cannot be anything special otherwise the directors would not have been allowed to buy yesterday.

Still, they are doing their best to pump the price back up, cannot fault them for that. Top of the trend line is 82p, will it test that in April and fall back, or will it not reach it and fall back in a couple of weeks ?

Alot is going to depend on the market.

It does look as though some of the Aim stocks I mentioned yesterday have found the bottom and are making moves northerly.

Its to be expected in April. Tax year end selling hits stocks in March, then in April they go up as people buy "bargains" and then they fall in May when "Sell in May" happens.

So some AIM stocks will do well in April, only to collapse again come May.

Don't totally agree with that.

Aim stocks have been hammered because of the credit crunch 'run to safety' attitude. I don't think in this bizarre market you can gauge against any previous year. Look what's just happened to Mna. Who knows what's going to happen. If you don't buy into the idea that most companies are going bankcrupt then I expect to see stock prices rise with the obvious pullback from time to time.

No sooner had I sold than it starts rocketing...?, I find there are certain stocks that no matter what you do...you just don't have any luck with them...RCG will be one of those for me.

Too true.

I could name many like that :-o

Comment to a post on AFN :

It is an interesting point, and I raised it earlier that somone should be asking what the terms are for the directors bonus scheme. EG, is part of it weighted towards earnings per share ? Underlying earnings etc.. ?

If with the R&D costs issue on the last results being put to intangibles, and with share buy backs being made that enhance the earnings per share figure at the expense of shareholders funds.........there must be a question of why there is an all out efforts to beat broker forecast EPS figures.

Perhaps there in lies an answer as to why the broker EPS forecasts are so "low". Perhaps these figures are the companies own "internal targets" upon which director bonus is based, and of course, beat those targets and qualify for extra big bonus. So the question remains for last year 2007 and for this year 2008, is any part of the director bonus weighted to "beating preset EPS figures" ??????????



marben100 - 29 Mar'08 - 18:15 - 16854 of 16861

Just got round to studying the annual report, received a few days ago. One thing I note: directors' remuneration increased from HK$13.3m in 2006 to HK$42.9m in 2007. Raymond Chu's package rose from HK$9.5m to HK$31.6m.

Now, whilst I don't begrudge decent salaries in the light of good business performance last year, 2m+ (+ HK$4m of shares) for the Chairman/CEO of a company this size does seem quite a lot. I presume most of it arises from bonuses, however, so as long as the performance continues I shan't object too much.

The directors announced the renewal of the share buy back progamme today yet recently announced a reduction in final dividend to conserve cash for future acquisitions. The directors seem confused and short of cash.

Stolen from my friend donaferentes on another site:-

Very happy with today's bullish stance from Chu, believe the ML forced selling theory, believe resolution of the Wang estate would be most helpful, whatever promises made about not selling by Chan etc.

One small niggle - the share buy back, out of funds raised only last year. I am no expert, not even in nursery, but what evidence is there that share buy backs support the SP at all significantly?

I'd rather see the cash used either for a growing dividend policy - always supports the SP over time (v. long term Barclays Capital says dividends are 75% of total return on investment), or earnings enhancing acquisitions.

We want the management to invest our funds profitably, not give it back to us with no added value.

I see this currently as a long term pension hold, come rain or shine short term.

You make a reasonable point but following recent transaction in their own shares the SP has risen - made me 20% in past month - imagine how much Chu and his mates had added to their pile even on their puchases on 27 Mar. Good luck to you all indications on this one reflects that the shares are too cheap and should be around 120p

I cannot believe this...I must have sold at the worst possible time....blast it !

RCG bought 25000 of their own shares yesterday, with 232 million shares issued who are they trying to impress?!

me?

Olympic Contract for RCG


According to the news published on the Chinese RFID website on 9 April 2008,
http://news.rfid360.cn/200804/7320.html

RCG has just been awarded a two-year wireless LAN contracts to provide the wireless data services for the venues of Beijing Olympic Games.

http://www.rcg.tv/html/eng/industry_technology/news/rfid_news/2008_details_38.jsp

Comment from ADVFN after posters got tired and sick of "PapalPower" negativiness at the stock lately .........


Wandering how "PapalPower" was promoted to, from "Fartpower" to the present nickname? all to do will "baked beans"

Has keeped clear of this thread this afternoon after the BREAKOUT, may aswell stayed at his FARTING thread

Breakout this afternoon from the latest high recently on the bounce from lows.

Still like to see us clear 80p to decisively break the massive March 2007 downtrend. Reckon it's coming soon?

stockdog

76p +3.25p
Any rise tomorrow and goes over the donwtrend line

Master RSI -

Having a good ramp are you ?

Lucky I was bearish on this one all the way from 150p down to 50p :) LOLOL

MasterRSI = Pumper and Dumper - nothing more, nothing less

Pure ramping...................

That's why the sp has risen some 20p PP I suppose.

Pure ramping on here.

Ah, now I understand.

It has not risen 20p on ramping, however

some now are trying to ramp it....yes.

Well its obviously just worked! lol

If we can now get back above the 200dma then perhaps there is hope for a sustained rally back into the 100's. Since I rashly bought my last lot at 142.5p (although the bulk at average of 68p) it would obviously be a comfort to get back into profit on those. Fundamentals suggest it strongly, as does Jim Rogers current aggressive stance on Chinese stocks (RCG not strictly a CHinese stock), but we are clearly in the grip of market sentiment - w/wide and all things Chinese. Sentiment cannot last for ever, although perhaps longer than any of us can stay sober - to pervert a well know expression!

Today's continued move up helps confirm my view that this is a very reasonable hold mid-long term.

Hope yer right!

I rather stupidly bought on results at 83p so coming close. I fear a retracement now.

You can nearly always guarantee with these situations, if I sell to make a small loss the sp will rise and if I hold, it will slump.

Such is life on the SM.

Try a short spreadbet whilst continuing to hold long - that ought to confuse them!

good point.

Its coming up to results, its also late summer, this is when the normal pump and dump crew start to buy stocks (they buy now ready to sell into any results spikes in late August through end September). Therefore, expect to see "old faces" start to return to threads as they start to pick up their little holding now, ahead of trying to ramp the bottom off of it into results time. This happens all over AIM, especially on the stocks where a good ramp could be got going (say China stocks - low PE's - thats a great ramp to attempt).

So, as summer draws to a close watch trading volumes on AIM tiddlers, expect some buying to be going on, and then the threads start to get busier, old names re-appear as do new names start to appear.

All telling you how cheap this stock is and what a bargain.

But do not forget, these are in the most just trying to ramp the price up and will disappear before or just after results are out in the Autumn

Its time for Rampton........unlimited attempted ramping to create as many AIM spikes as possible into results season - that they can sell into whilst posting on BB's how wonderful the results will be/have been

My opinion if anyone wants it, LOL :)

If anyone is thinking of buying AIM stocks ahead of results, do it now, do it until end July, then stop.

Don't be the ones caught buying the results spike and holding the baby as the SP crashes after results - beat the rampers at their own game, and be the ones selling on the spike ahead of them getting out for their small gains.

Price spikes might be subdued this year, owing to a risk of bad economic news making markets tumble, so the buying should be lower and less risk taken - they do not want to be caught with their pants down if the tide goes out.

perhaps I've missed something here.
didn't realise it was late summer
In fact, I didn't realise we've had a summer at all!

Well, given that many PI's are locked into this one from well above 100p levels, there is going to be extensive attempted ramping of this on AFN and others imo.

Some people must be sat on massive losses given their very wrong "bullishness" on RCG at over 100p.

So given this likely "Welcome to Rampton" we will get on AFN, I have taken a few short term longs, let the rampers earn me some money, but keeping tight stop losses just in case of collapse back, we are still in a bear market, and things might not go the bulls way.

Very good chance it will collapse again imo after results as people take their money out, so might make a nice little short short later as well.


From the other RCG thread at AFN :


PapalPower - 24 Jul'08 - 09:35 - 245 of 246

Sorry if the SP has ticked up a bit, but given my post of yesterday about its time for "Rampton" by the RCG rampers........I have added a few short term long spread bets both yesterday and today. So I am in fact by default an RCG shareholder, well sort off anyway :) LOL

Well, if they are successful in ramping it up, might as well enjoy some profits from it.

Stop losses are tight, as with this stock, and these markets, if it comes down, time to get out fast imo.

Oh my god you get every where don't you and all you do is cut and paste all the dribble you write from one bulletin board to the next - i cannot believe how lonley you must be.

Another one added to the "squelch" lost........good bye "tweg05"

Its the first post I have ever seen you make on Moneyam.......new user name is it ? LOL.

Bye.............


And for those who want to read some discussion on RCG, I would suggest reading the recent TMF thread, posts by Aliceinwonder and myself being the most notable on the thread.

Link is : http://boards.fool.co.uk/Message.asp?mid=11156635&sort=whole

My squelch list now contains :

zscrooge
coeliac1
tweg05
holmes9
paul56


For all of these posters I cannot see any of their posts, and therefore will not be replying to anything they may say or post.

Figures to watch out for come interims..........




Turnover

2007 H2............................HK$ 843,566,000

2008 H1............................HK$ ?????? (Expected to rise due to acquisition)



Profit after Tax

2007 H2............................HK$ 267,468,000

2008 H1............................HK$ ?????? (Expected to rise due to acquisition)



Earnings per share

2007 H2............................HK$ 1.166 (116.5 cents)

2008 H1............................HK$ ????? (Expected to rise due to acquisition)



Inventories

2007 H2............................HK$ 144,945,000

2008 H1............................HK$ ????? (Rising ? lets hope not.....)



Trade receivables

2007 H2............................HK$ 395,278,000

2008 H1............................HK$ ????? (Rising ? lets hope not.....)



Cash in the bank

2007 H2............................HK$ 651,290,000

2008 H1............................HK$ ???????? (falling ? lets hope not by too much.)



Margins ?? (OP / Rev)

2007................................31.86 %

2008 H1...........................????? (falling ? lets hope not.....)



Net Cash Gen From Ops in terms of Profit After Tax

2007 H2....191m NCGFO from 267.5m PAT = 71.4%

2008 H1.............................. = ????? (Lets hope its not falling)



Cash Generated From Ops Against Turnover


2007.......170,025K v 1,438,781K ............ = 11.8%

2008 H1...... ???? v ????........................ = ???? (Should be rising its hoped)




Intangible Assets ????? (Is there lots getting dumped here ?)

2007 H1...........................HK$ 25,645,000

2008 H1...........................HK$ ??????????? (Rising ? lets hope not...)

There has been lots of buying of RCG by private investors, everyone expecting a good ramp to go on into results. When I see posts like below (bottom of the post) with people going "all in" you do have to feel worried for them........its a crazy gamble that might win, but might also lose a fortune.

But even with all this demand, the seller keeps selling and filling all the demand.

By the very nature of supply and demand, if all the demand is happening now, and being filled, then come the time that the hot money wants to get out, just before or on results day, then over supply could likely happen, and the price could capitulate well downwards.

There is a rumour that the Directors will be buying at results time, well, they should imo because the directors sold cumulatively millions of shares last year at 131p and made millions of profits, so they should "buy" if they consider the price cheap.

Also, looking at the numbers for 2007, and quoting another poster ;

"Just got round to studying the annual report, received a few days ago. One thing I note: directors' remuneration increased from HK$13.3m in 2006 to HK$42.9m in 2007. Raymond Chu's package rose from HK$9.5m to HK$31.6m

then given the package and the shares sales, some of the RCG directors are very very very rich with loads of cash. Wonder what their 2008 "bonus" and therefore package will be.

If their bonus is based upon increased revenues and EPS figures then they are going to be getting millions of pounds in "bonus" again perhaps in 2008 ?

This is why I feel its very important to consider all metrics as per the list I have posted and how growth has been achieved, has it been "growth for growths sake"

A complaint many people have is that the business is growing but the cash generation is not really in the same league.............

Well, are bonus's linked to revenue growth ? EPS growth ? and not linked to cash generation ?.........that would be interesting to know - . We will see come results how the business has done on all metrics.

Does anyone know how the directors bonus scheme works ? Is it weighted towards turnover increase and EPS increases in terms of "qualification levels" ?


Some of those "worrying" imo, posts.



"Mon 11:57

i have decided to invest all my money into this, results in 4 weeks time, im very sure buying into this price will return a 25 to 50 % gain imho "

&&&&&&&&&&&&&&&&

"Tue 15:38

its a cracking article and yet more great news in RCG's favour I have lumped all my funds into this stock and I an confident "

good luck

Another set of cracking results, why is the sp still here ?
holding 50k @ circa 68p being, am I missing something ?

No dividend again, huge intangibles in balance sheet following latest acquisition, uncertainty generated by future ownership of deceased shareholder and continuing cashflow questions etc.

LOL Halifax. Worst de-ramp ever or are you an analyst in a suit who wouldn't know his arse from his elbow?

i didnt realise that halifax had a suit.

Sold out and got my money back at last!!

What a run over the last few days. I don't believe there is anybody buying this - who in their right mind would buy an AIM stock now? I think it is just the MM's adjusting the price which IMO says that all small caps are having their sp kept artificially low. This should be well over 1. I must admit I don't care now but good luck to those holding over 1. I'm sure you'll get your money back when the market improves.

Nice to see this exactly where it should be.

In case anyone wondered I have been enjoying a superb holiday and have been away from the net a lot, apart from the occasional post on III.

I refuse now to post on A DVFN, its has got terrible in terms of abusive rampers this year, totally pathetic and not worth anything now. The good thing is of course they are all now losing money, and I really hope some of those abusive idiots lose everything in the ongoing crash.

Some of us did warn back in January that it was best to sell anything and everything, and we were ridiculed by the abusive rampers, and now it comes to pass...........LOL :)

With what is going on, you can be sure that Asia will be into severe problems come 2nd half 2009, going into 2010.............not a time to be loaded up with "China" exposure stocks..........now people can see why everyone has been selling these "bargains" and not buying them.

The ultimate sign was China dropping interest rates, in the face of inflation, that was a real admission that they are now heading into severe problems :) ho ho ho.

I'm not abusive but please don't be silly!

Excellent company well run but along with everything else on AIM slaughtered. End of story. If and when AIM recovers and once the overhang is sorted it will be 200p + as you very well know.

I don't own at present because of the aforementioned.

Now with debt, falling margins, massive intangibles on the balance sheet and heading in a 2009 and 2010 which will slow down massively for them.

On top of this you say "well run" but shareholders saw a cut in the dividend last time around.

Now listing on to the Hang Seng, just as China will go into trouble, and so the Hang Seng after years of running on the back of China, will now collapse with it.

All in all, far better punts for your money, and not on a pissy AIM listed stock like RCG which has been an awful investment for many people falling from 150p to 50p.

All AIM stocks have been a dreadful investment. Effectively it has stopped trading along with the small caps.

This will soon be more than just an AIM stock.

This is funny, so amusing for those who called it right.

Plenty of rampers now getting themselves well and truly burned with this one.

Given the outlook for China and the potential for continuous downgrades and problems for anything related to China, who would be buying such a stock as this now ?

The Hang Seng will look like a wonderful short in 2009 and anything on it, like RCG perhaps ????

Quite amusing, feel sorry for anyone stuck in this, and for any of those abusive types, well I hope you are hurting badly and losing a shed load :)

Strange how pp hasn't mentioned the big rally today.

Oh yes of course, use the drops to support your argument and ignore the rises.

pp is too busy covering his short position in his boiler room!

On top of the GNG admission that things are slowing down, today also saw ZTC (Chinese telecoms) say this which again is more evidence to say that things in China are under pressure, and those who said 2009 would be a bad year for anything China related, might well be proven correct :

"As has been widely reported, trading and credit conditions for SME's in the PRC have become increasingly difficult throughout the third quarter of 2008. This is due to deteriorating macro economic conditions outside the PRC and slowing economic growth and restrictive credit policies in China. As a consequence, our markets have become increasingly competitive, disruptive and oversupplied. ZTC has therefore achieved sales significantly below those seen in the same period last year.

As a consequence, the Company's working capital available to operate and expand its business has become constrained, as has been previously announced. The Company continues to review all aspects of its operations to reduce costs and improve efficiencies to improve the availability of working capital for new model and market development. The possible sale of assets referred to above is one example of a potential method of cash generation that is being actively considered."

RCG does not use credit - in fact it gives it by pre-paying suppliers (need to watch this generosity, as suppliers become less able to pay). It is debt free and pays its creditors regularly.

It does not have anywhere near the competition that a telecoms company would have. Telecoms is a relatively mature business compared to RCG's.

RCG is in good defensive markets - health, security and, although cyclically vulnerable to its third leg logistics, because it can replace old technology with newer more effective and cheaper technology, it may well continue to move ahead even in this field of operation.

I wish PP joy of his short-term trading, whilst we enjoy our longer term view of the company. There is no reason why PP's trading in and out over 5 years will not yield as much profit as my long term buy and hold for 5 years. What is always curious to me is the vitriol bears display in their posts compared to the generally sunnier nature of the bulls. I guess bear and bull stances do reflect some fundamental human psyche of the individual concerned.

I seem to see they are using credit, and now have some debt as well............look at the last results...........

you an an utter twat Papal power.

Oh dear, another sad nutter from ADFN joins MoneyAm and straight away is abusive.

Sad people.

Right now, on a short term basis and given the changes that have happened over the past week up to now, I would now rate RCG a BUY.

So IMO, at just over 30p, its a BUY (for the short term anyway)

DYOR.

what a buy tip