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3

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This one IMO is a strong buy now, could have quite a good Q1 2009 in price movement terms, upwards that is.

Hang Seng listing (making it dual listed) will be a key driver.

RCG listed as an awardee of Caring Company Logo 2008/09
16 Dec 2008

RCG Holdings Limited (AIM:RCG), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that it was listed as an awardee of the Caring Company Logo 2008/09 by The Hong Kong Council of Social Service (HKCSS).

RCG received the award after being nominated by two charities, Sheng Kung Hui St. Christophers Home and Medecins Sans Frontieres. RCG was highly commended for its dedication to social responsibility, specifically its continued donations to non-profit charity organisations as well as providing an employee-friendly working environment.

To be eligible to receive the Caring Company Logo, a company must demonstrate good corporate citizenship, and qualify for two out of the six specified criteria listed on the Caring Company website. The award presentation is scheduled for 10 February 2009, and the Caring Company Logo will appear on Groups collaterals as recognition to RCGs contribution to social services. Award-winning companies in the same category in the past year include multi-national corporations and large enterprises based in Hong Kong such as Sony, IBM, Cathay Pacific and Deutsche Bank.

Commenting on the award, Mr Raymond Chu, CEO and Chairman of RCG Holdings Limited said: It is our honour to receive the Caring Company Logo recognising our efforts in corporate social responsibility projects. It is RCGs belief that apart from continuing our business growth, we have a responsibly to invest in socially responsible projects. I would like to express my gratitude to the charity organisations that nominated RCG, as we look forward to continuing more corporate social responsibility projects.




For further information:

RCG Holdings Limited
Anita Chau, Deputy Chairman & COO
Sri Hartati Kurniawan, Chief Technology Officer
Tel: 852 3669 6999
email: srihartati@rcg.tv

A new (and long) article from RCG headed:

"RCG providing Integrated Medical solutions for Healthcare Industry
16 Dec 2008

(some extracts)

In recent years, hospitals in Southeast Asia have been suffering from the increasing number of security incidents. There are cases of doctors giving out the wrong diagnosis due to patient mix-up; faulty prescriptions; switched babies, and many more. These problems indicated that the medical industry is now facing far greater challenges in the new era. Hospitals in the region are calling for a revamp to their systems to minimize human errors, to manage an enormous amount of data and to enhance the accuracy of information."

"Integrated Medical Solutions

RCG continuously develops innovative biometric technology and radio frequency identification (RFID) technology to provide integrated security solutions that can be well adapted to the current medical system. Medical errors in recent years have demonstrated that the medical industry is in need of new technologies and management platforms to solve the technical loopholes in different sectors.

Nowadays patients do not have privacy assurance and any information on a recording medium that can be retrieved easily by anybody. More problems arise when the record cards are misplaced or lost. An integrated solution strategy should be designed to cover all hospital departments in order to establish a comprehensive security mechanism: starting from the moment of registration in the hospital, patients are tracked using integrated technology.

Integrated Medical Solutions In-patient capability

The In-patient section includes the adoption of WLAN, biometrics and RFID technologies. Traditionally barcodes were used for registering patients, which was time-consuming and only limited information could be stored on each barcode. RFID is capable of massive storage of approximately 30,000 records. Through UHF passive RFID tags embedded on cards or wristbands, information including patients information, drug prescriptions, medical orders, patient history, reports and other medical administrative items can be easily stored on a single chip permanently."

"Medical Industry Ahead

The medical network in Southeast Asia involves many aspects such as patients, doctors, healthcare workers, equipment usage and management, etc. The business opportunities within the medical sector by combining biometric and wireless technologies, namely RFID and WLAN, are enormous. RCG believe that the systems major functions, namely data accuracy, human errors elimination and streamlined workflow, are exactly what the medical organizations nowadays need.

RCG is now focussing its efforts in establishing a standard data system for the healthcare industry, which aims to share patients medical history and information among different medical institutions. Building on an integrated system utilizing UHF RFID, biometrics and WLAN technologies, patients carrying an RFID card with their medical treatment history and other details stored will receive attentive and caring services in any medical institutions."

Don't forget to get your entries in on the PPP 2009 competition at TMF

http://boards.fool.co.uk/Message.asp?mid=11368116

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RCG is my "2nd stock" with AST as the main one, split 50/50 long on both.

http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2008_details_107.jsp

A trend for hospitals deploying RFID

19 Dec 2008

Reported by the Wall Street Journal, an article mentioned the growth of RFID in hospitals, mainly for use with traditional automatic-tracking software programs, while some systems began the tracking of employees for better management of understaffed areas. According to a non-profit consulting group, ECRI Institute, about 10% of the hospitals in the United States have adopted RFID tags for tracking within the hospital areas.

According to a research report by IDTechEx, the market size for RFID systems and solutions deployed in the healthcare industry is expected to increase from USD120 million currently, to USD2 billion within 10 years. A recent report has criticized the use of RFID for tracking medical equipments, which causes potential threat to patients. It has been said that the research was done with bias and careful considerations must be made when understanding that the benefits outweighs the threat by a significant portion. A number of hospitals also deployed RFID for prevention of baby-kidnapping and specimen tracking, which also received favourable results after the trial.

http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2008_details_106.jsp

RFID spending increases in healthcare industry, said Kalorama

19 Dec 2008

According to a New-York based market research firm, Kalorama Information, the spending on RFID systems in the healthcare and pharmaceutical industries will increase dramatically in the next five years. The spending in the healthcare industry is expected to increase to USD3.1 billion in 2012 from USD474 million in 2008. The money spent in the pharmaceutical industry will increase from USD70 million to USD600 million in 2013.

One of the areas in healthcare, patient charge capture, was pinpointed by the report for its high potential and the lack of attention from the industry. The pharmaceutical industry is also said to possess strong potential of adopting RFID, including improvement of inventory management and supply chain management. The need for adopting RFID in pharmaceutical industry was recognized by the US Food and Drug Administration and also the government, which is one of the strongest reasons for the growth in the industry.

December 08 Newsletter.

Some good contracts news in there.


http://www.rcg.tv/html/eng/about/newsletter/2008dec.jsp


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Interims 15th Jan, bought this morning 30k @ 32.5p bit annoyed does not show on my system, been in a few times before and they have clicked up prior to results.
Probably due to scarce news flow thoughout the year,

The main thing for RCG is the Hong Kong listing.

This will bring a whole new drive in terms of buying power, and it is not controlled therefore by AIM demand, but by Hang Seng demand.

This is a well known brand in HK, and a well known company, and currently trades at a MASSIVE discount to similar companies on the Hang Seng.

Potential therefore to rise very high if the Honkies start buying RCG when it joins the Hang Seng.

I have a decent holding at average circa 32p. What happens next is anyones guess but a few Honkie friends say this one might go through the crazy IPO price rises of previous stocks on the Hang Seng.

Given the Hong Kong connections in management, this could be a serial multi bagger once the Hang Seng listing is live.

Well, I would imagine they are going to be affected by the global slow down, no getting away from it, but its just too oversold now IMO.

They have cash, and this stock on the Hang Seng would be trading so much higher, perhaps 6 times higher than the AIM price.

Therefore, all you can do for now is happily tuck them away and wait for the Hang Send listing to be the catalyst for a retaing IMO.

A large sell occured on the 31st, seemed to be a final "dump" - perhaps it was the last of the sellers holdings ?

Certainly more lively today, up nearly 10% and looking, so far, fairly strong for the new year.

Perhaps it was part of Madam Wang's (deceased) large shareholding? Is that the reason for the IPO?

Nina Wangs holding is locked away and not able to be traded. The IPO is because AIM is not a market that is valuing RCG fairly, and lots of Chinese/Hong Kong investors are unwilling to buy this share as its on AIM in the UK.

Once it is on Hang Seng as well, in Hong Kong, trading in an easy to access and watch place, it will bring a masses more investors, and lead to a more "reasonable" valuation.......which may be multiples of the present price. It not an IPO, its purely an introduction, but means it will be then dual listed, Hang Seng and AIM.

I put a comment on this thread over at TMF, you will see it as you move down through the replies.

http://boards.fool.co.uk/Message.asp?mid=11380292&sort=whole


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Write up of RCG over on TMF :

http://boards.fool.co.uk/Message.asp?mid=11382830


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Some RFID/Biometrics news from RCG :

http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_3.jsp

RFID for vehicle recharging stations
5 Jan 2009

A start-up company in California has recently introduced a network of vehicle electronic recharging stations within the region. Batteries of specific vehicles can be recharged in the stations when drivers are away from home garages. RFID cards are used in money rechargeable cards in the form of pay-as-you-go and monthly unlimited access subscriptions. Data transfer between the RFID card and the reader is encrypted to ensure data security during the transfer.

Vehicles will be parked at specific locations, where drivers hold their high-frequency RFID cards to the kiosks with the embedded RFID interrogators. Information collected will be transferred through GPRS to a centralized server which verifies the card information, and an authorization packet will be sent back for initiating charges. According to statistics, 20% of cars in the United States will be electric by 2012, representing a market potential for the widespread growth of the technology. Approximately 8 million charging states may be deployed by the company which uses RFID as means for secure payment.

Source: rfidjournal; RFID Is the Key to Electric Vehicle Recharging Stations (Nov 21st, 2008)

...........

http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_2.jsp

World's smallest active RFID tag announced in India
5 Jan 2009

According to a recent announcement, a company based in India has recently introduced an active RFID tag which claimed to be the smallest in the world at the moment after 18 months of research and development. It can be used for asset tagging including notebooks, servers and vehicles in industries including healthcare, manufacturing and IT etc.

Active RFID tags include an embedded battery for powering up signal transmission through the antenna, which is one of the barriers to developing smaller tags. The newly introduced tag has a reading range of 20 meters, with dimensions of 26 x 23 x 7.3 mm which is believed to be the smallest among the tags in the market. The active RFID tag has been deployed at a telecom company in India for asset management.

Source: RFIDnews; Indian Company claims 'world's smallest' active RFID tag (Nov 24th, 2008)

....................

http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_3.jsp

Biometrics passport facility built in Malta
5 Jan 2009

According to a recent announcement, a factory facility has been purposely built for research, development and production of biometrics passport located in Malta. The factory was said to be the first site in the world for manufacturing biometrics / e-passports required by many countries for enhanced border security.

The facility occupied 2,600 square meters and has a capacity of producing 2 million biometrics passports annually, which could be expandable. The factory, which costs at EUR 6 million, is capable of manufacturing biometrics passport, which contains embedded chip storing digitalized facial image or fingerprint images for authenticating travellers and visitors.

Source: findbiometrics; World's first purpose-built 'epassport' factory opens in Malta (26th November, 2008)

................

http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_2.jsp

UK consumers preferred biometrics
5 Jan 2009

According to a recent research project on consumer's security concerns, consumers in the United Kingdom preferred biometrics and are most well-adapted to the technology throughout Europe. Statistics showed 75% of the UK consumers accept fingerprint as means for identity verification in banks and government agencies, compared to 63% in Italy, 62% in Germany and 59% in France.

The area receiving most concerns from the UK consumers was financial security, such as misuse of credit and debit cards - has been increasing throughout the last six months. In terms of iris recognition, 74% of the UK consumers were prepared of such means of verification, compared to 72% in the Netherlands, 48% in Germany and 45% in France. The survey showed a general preference of UK citizens towards biometrics technology compared to other parts of Europe, and the increasing concerns of identity theft and border security within the region.

Source: findbiometrics; Brits ready for biometrics to tackle ID fraud (November 25th, 2008)

Trading statement overdue?

Nothing can be released while the Hang Seng listing application consideration is in process.

A poster on another board has just been in contact with the CFO and asked some questions, here are the questions and replies :


Q*The RNS issued in November 2008 mentioned the listing may occur at the end of 2008 or first quarter 2009. Does the company still expect the listing to occur in this time frame?

The HK listing exercise is currently in progress and if it happens, it is expected to be in the 1st Quarter of 2009.

Q*Does the company intend to remain listed on the AIM market or perhaps gain a full London Stock Exchange listing?

Yes. RCG will be dual listed on both AIM and SEHK.

Q*January trading updates have been forthcoming during each year. Does the proposed HKex listing preclude the company from delivering such an update?

Due to the on-going listing exercise in HK, we are not expected to make any further statement other than what have already been made public to the market.

Proselenes Emailed the CFO and just received the same reply of HK listing 1st 1/4 09 from CFO

Comment from Chartist "Zak Mir" over at SC.


Zak Mir Reged: 28/06/07
Posts: 559

Re: RC Group (RCG) [Re: Proselenes]
#437178 - 09/01/09 09:12 AM

Technically, we need to see a weekly close above 2 month resistance at 39p - something which now does not look to be too difficult. The target would then be the 200 day moving average at 57p.

Absence of trading update makes it very difficult to assess the impact of the global recession on RCG's business.

From a poster on a different BB :



Q&A with CFO of RCG.

1. Has RCG received clearance from the listing body to list on the HKEx ?

The HK listing exercise is currently in progress.

2. Are RCG still planning to list on the HKEx ?

Yes. The plan is on-going.

3. Has a listing date been set yet?

We are expecting 1Q09.

4. Do you prefer to list before, at the same time, or after the announcement of the annual results?

The timing is not entirely within our control.

5. Once a listing date has been set, how far in advance do you plan to inform the markets?

Once a date has been firmed, well notify the market immediately.

6. Will RCG, or RCG's largest shareholders, be making any shares available as part of the listing process?

Unable to comment at this moment.

7. I have read the last announcement that trading is in line with market expectations. Would i be correct in summarising the market expectations as eps of 18-19p for 2008?

Market expectation is for a FY08 Turnover of round and about GBP132m*

* 43% revenue growth between 2007 and 2008

pp surprised you are still ramping RCG when your other blogs are so derrogatry towards chinese companies. When RCG has enough cash to pay shareholders a decent dividend then their shares may be worth something.

RCG is a great Malaysian company. Most of their business is Middle East / South East Asia.

Chinese exposure is small, but building now.

Cash, RCG have plenty of that, did you not read the interims ? However, they are a growing business and so will divert cash into growth.

Dividends are only required when the "growth stops" and you have nothing better to do with the cash.

RCG do pay a small Dividend, and put the rest of the cash to work growing the business.

Some Biometrics/RFID news updates on the RCG site :

http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_5.jsp

Biometrics ID cards issued in Morocco
13 January 2009, 23:00:00
According to an announcement by the North African government,............


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http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_4.jsp

UAE deploying biometrics to eliminate fraud
13 January 2009, 23:00:00
According to the UAE Ministry of Interior, an agreement has been reached with the UAE Central Bank and other banks.........

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http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_6.jsp

RFID for vehicle recharging stations
13 January 2009, 23:00:00
A cosmetics company has recently deployed RFID-enabled technology ........

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http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_4.jsp

Belgian hospitals adopting RFID
13 January 2009, 23:00:00
Two Belgian hospitals (St. Trudo and Jan Yperman) have recently adopted ........

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Hang Seng listing confirmed Feb 9th should see some movement now

Yes, once the shares are finally on the Hang Seng, and buyers come in, then the SP should start moving.

AIM is dead and not going to drive the price, however, given its very easy to transfer stock from AIM to Hang Seng, any demand in Hong Kong is going to really drive the AIM price upwards to maintain parity.

http://www.investegate.co.uk/Article.aspx?id=200901191100008525L


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Nice article over on TMF.

http://www.fool.co.uk/news/investing/2009/01/19/bag-an-aim-bear-bargain.aspx

Bag An AIM Bear Bargain By David Holding From the Fool blog

Published in Investing on 19 January 2009

This cash-rich small-cap is priced at two times possible earnings!

The good thing about a bear market is that it treats all companies the same.

Of course, that isn't completely true but a lot of companies with rock-solid balance sheets, exciting prospects and which haven't yet put a foot wrong, have seen their valuations trashed.

AIM-traded RCG Group (LSE: RCG) has a prospective and historic price-to-earnings ratio (PER) of under two -- with over half its entire valuation covered by cash and a net asset value of more than three times its market capitalisation. So the share price of 34.75p seems to be pricing in a heck of a lot of bad news despite the company giving no hint of any such news so far.

Value and excitement?

You could be forgiven for thinking that RCG operates in a staid, boring sector where there is pessimism over future earnings. But not a bit of it. The Hong Kong-based company has a wealth of intellectual property in fingerprint and facial-recognition technology, biometrics and RFID products, which use technology to track products and people as they move from one place to another. And its been growing like Topsy supplying these security products in South-east Asia, China and the Middle East.

The firm's broker has earnings per share (EPS) of 18.81p penciled in for this year, which would put the shares on a PER of a little under two - or less than one against enterprise value (market capitalisation minus cash)! And in the first half of 2008, the annualised basic EPS was 18.3p -- so it's not like the forecasts aren't grounded in reality. Of course, RCG certainly isn't immune to the downturn but during November, we were told that trading was in line with expectations as RCG felt confident enough to take a larger stake in Vast Base Technology Limited.

A wealth of research

This excellent write-up links to other discussions and a wealth of information; Motley Fool discussion board devotees are certainly no strangers to RCG, and the company has its own forum here.

RCG has given those on board a rough ride over the last couple of years as this chart shows, though seemingly through no fault of its own. Market sentiment and forced selling seem mainly to blame. In fact, RCG was considered to be strangely undervalued a little over a year ago at 85p as this write-up illustrates. A recovery to this "low rating" would reward investors buying in today two-and-a-half times over.

Concerns

That said, there are a few concerns. RCG's AIM status, its Far East headquarters and Bermudan registration are sufficient deterrent for some investors -- particularly institutions -- whilst the issue of who owns the shares left by the late Nina Yang hangs over the company. The background to this issue is well explained here. It could result in Tony Chan controlling over half the shares.

On the other hand, RCG has announced an update, today, on its plans to list on the Hong Kong stock exchange, which could well give the shares a boost. It is hoped that trading on the exchange will begin early next month.

All told, I think the shares are patently undervalued.

Disclosure: David owns shares in RCG Group

January 2009 Corporate Newsletter is out, link below, and it makes good reading.

http://www.rcg.tv/html/eng/about/newsletter/2009jan.jsp

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On a seperate note I have topped up again, originally got a load at circa 32p levels as posted before and now some additionals at 34p levels.

The case for RCG gets more compelling as sterling falls further, and its akin to being able to buy HK dollar earnings at knock down rates in sterling (for a few more weeks anyway)

RC Group is an Asia based company and is well known in Asia, particulary in Hong Kong.

The Hang Seng listing should see Hong Kong investors lapping up the so low PER of RCG and pushing the value of RCG stock up to anywhere even circa 15 times the HK dollar earnings (HKex average is circa 15 times)

As its very simple (read the web site) to swap stock over to sell on the Hang Seng from AIM and the other way around, the prices on AIM and Hang Seng will be matched to within couple of percent maximum.

There is a whole mass of companies on low PER's on AIM, however, they all suffer the same problem, low PER but also low liquidity. With no buyers around it makes no difference if you pump out PR (as WCC did today and it made no difference) or if you pump out results or anything else, simply there are no buyers on AIM and the low PER's are here to stay for a very long time.

So, what do you do ? Do you load up with little illiquid AIM stocks like WCC, TAIH, GNG and others, try to make yourself believe its a wise choice and will hedge against falling sterling value, but in your real heart of hearts you know that its so illiquid on AIM you have no chance of selling in quantity, and even with the very best news the lack of buyers and liquidty means the PER stays low until the next market bubble in.....well, how many years ? Are you really willing to potentially lock it up for 3 to 5 years with no chance of selling it unless you take a loss, should you need cash out of the market.

Or, do you pick a stock like RCG, which will soon, God willing, be dual listed on the Hang Seng and AIM, will be open to much more liquidity with lots of Hong Kong/China buyers buying in to such a low rated stock which is a "brand name" in the region. Liquidity is key to reratings, and if RCG were to remain just "AIM" then it would also remain "low rated" IMO, until the next "boom" in the economy.

However, everything changes in terms of liquidity when the Hang Seng listing goes live, and many Hong Kong stocks have done it before, and multibagged within a short time of listing. Hopefully, RCG will also join that list, although it may not happen overnight, it should happen withing a reasonably short period of time.

As ever DYOR ! and things might go wrong and the listing might not happen, but then, what happens if it does ? I am happy to have a lump exposed to RCG now at average of around 33p, and would seriously love to sell this, this year or next, at 15 times the Hong Kong Dollar earnings price equivalent in sterling pounds

The price should be driven solely by the Hong Kong Hang Seng index soon given AIM weakness, and that is the driver, the liquidity and the key to an AIM stock rerating, and hopefully this ones.

At a guess one should expect earnings to be around about 2.2 HK$ per share (and given the Hang Seng listing, and that the Hang Seng will drive the price once listed, AIM will just follow it).

With 2.2 HK$ of earnings, priced at the Hang Seng averagle multiple of times 15 you get circa 33 HK$ share price for RCG.

This equates to 3 pounds sterling a share.

During bubbles the Hang Seng can go to 30 or 40 times multiples of earnings, so 6 to 7 pounds a share.

Even so, and ignoring that, and falling back to a below average 10 times earnings (below the current average for the Hang Seng) you still get over 2 pounds a share.

Just keeping those fingers crossed that the listing goes ahead early February as planned.

Some good news, the Hong Kong Hang Seng listing looks approved.

http://www.investegate.co.uk/article.aspx?id=200902031200026861M

Plenty of information available as well too. Looks quite good.

SP went up well yesterday and today so far.

Roll on the HK listing, and a proper x 15 valuation, not x 2 before cash.

Bought into this one yesterday, no new shares to be issued when Hongkong tradiing starts shortly,demand from chinese investors likely to drive the sp up.

http://www.hkex.com.hk/tradinfo/tradarrange/currentmonth/e802a_090205.htm

Trading Information
Securities Market
Trading Arrangement News
RCG<00802> - New Listing

Market participants are requested to note that RCG Holdings Limited has
been approved for listing. Trading in its shares will commence at 9:30
a.m. on Tuesday, 10/02/2009 under the following particulars:-

Stock Code Stock Short Name Board Lot
---------- ---------------- ---------
802 RCG 1,000 shares


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

http://www.independent.co.uk/news/business/sharewatch/small-talk-minster-pharmaceuticals-in-race-against-the-clock-1604652.html

Monday, 9 February 2009

RCG logs on in Hong Kong

It has been a good week for shareholders in AIM-listed RCG Holdings, the group that makes biometric security devices.

After it announced last week that it intends to become the first AIM-listed company to get approval to dual-list its shares on the Hong Kong Stock Exchange, which will take place on Tuesday, the stock jumped from 32p to close at 42p on Friday, with the company hailing the extra liquidity the dual listing will bring.

Regardless of the world's economic woes, the group operates in a growth market. As everyone becomes increasingly paranoid about the violation of our personal data, the group's computer security devices – the user scans in his thumb print before being logged on – is likely to prove popular. There are also offerings that keep events secure: on a recent visit to Shanghai, the group's biometric tickets ensured that David Beckham was only greeted by those deemed appropriate.

Raymond Chu, the group's Hong Kong-based chief executive, says the decision to list in Hong Kong is due to the insistence of the company's UK institutional investors, who wanted the stock to gain liquidity. There is another benefit for UK-based shareholders. The company's management is based in Hong Kong and most of its business is in China, east Asia and the Middle East. Having it subject to the strict corporate governance rules imposed by the Hang Seng should add a little comfort for investors.

Will be interesting to see what happens tomorrow and following that.

Quite often nothing will happen (unless results are released at the same time).

The "introductions" take place without much fanfare in Hong Kong, that all starts when results are out, and people can read through the figures when the companies make the headlines on their results day.

So it might be a bit quiet on the trading front for a few days/weeks, until such time as results are out and profile raised.

Or......there could be results tomorrow as well, or some local institutions have been lined up to start with a few buys tomorrow.

Who knows........anything can happen and not worth trying to predict. Happy to hold this one now for a good few months and lets see that the added liquidity does to a company on a PER of times 2, with net cash in the bank.

RNS confirmation

http://www.investegate.co.uk/article.aspx?id=200902091200019985M

RNS Number : 9985M
RCG Holdings Limited
09 February 2009

Listing on The Stock Exchange of Hong Kong Limited

RCG Holdings Limited (AIM:RCG, HKEx:802), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that the dealing in the Company's shares on the Main Board of The Stock Exchange of Hong Kong Limited will commence on 10 February 2009 at 9:30am (Hong Kong time).

For further information:

RCG Holdings Limited

Anita Chau, Deputy Chairman & COO

KC Chong, Chief Financial Officer
Tel: + 852 3669 6999
email: kcchong@rcg.tv

Investec Investment Banking
Erik Anderson / Andrew Pinder / Rowena Murray
Tel: +44 (0) 20 7597 5000

Media enquiries:

Abchurch Communications Ltd
Henry Harrison-Topham / Chris Lane
Tel: +44 (0) 20 7398 7708
email: henry.ht@abchurch-group.com

About RCG

RCG is an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets. The Company aims to develop new applications and revenue streams for global roll-out, particularly in the security applications industry.

Good news we would expect chinese investors to push the sp up quite quickly.

This link should work from sometime tomorrow to find the Hang Seng price.

http://finance.google.com/finance?q=HKG%3A0802

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Opened in Hong Kong now on the Hang Seng.

Price is around 8 HK$ or around 70p (as its about 11.5 HK$ to the pound presently).

So RCG might therefore open up on AIM as the biggest riser of the day.

You can watch action at this link.

http://markets.ft.com/tearsheets/performance.asp?s=802%3AHKG

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Went long 25 point yesterday hope your right proselenes.

Given expected EPS of around 20p levels, and with significant net cash in the bank, a price, after results, of around 140p to 150p levels should be about where RCG will trade for now in the current climate.

A PER of around times 7 to times 8 should be ok for Hang Seng.

As and when the next bubble comes, and PER's there go to times 30 levels, well, in a few years time you might see RCG at 900p levels and more. Until then I would suggest around about 150p target for year end 2009.

Nice and strong.

We need some consilidation to get short terms out, and more long terms in.

Next driver will be results, which will bring RCG to the attention of all Hang Seng investors.........and so, hopefully, drive the SP up through the 100p level.

pp if RCG closed at HK$ 9.79 in Hongkong why is the sp in London only 60p when fx rate is 1 = HK$11.48? Shouldn't it be around 85p? Have we got the wrong sp?

Arbitrage..........it will take a few days for the prices to get within 5% of each other.

Quite simply, if the AIM price stays low, and the HK price higher, then people will buy from AIM and sell on HK.

Up until the 17th of Feb you can transfer stock from AIM to HK with no charges incurred.

Even after that, its only a small fee........and this, in time, will make both prices get withing 5% of each other IMO.

Going to take some time, too many people taking profits on AIM presently. So MM's will be buying stock and transferring to sell in HK, for a tasty profit.

PP huge arbitrage opportunity sp now up 22% so far today looks like gap will close around 70p but longer term sp will have to go back to 125p to recognise how cheap these shares are with a PER less than 3.

Now trading at around 250p equivalent on the Hang Seng.

Going to be an exciting blue day on AIM as the AIM price plays catch up :)

Love it......my bottom buy of 32p is looking rather good for a solid gain.

Value this at Hang Seng tech bubble price of 30 times PER, you get 600p :)

Should anyone be wishing to transfer their AIM stock to the Hang Seng in order to sell in Hong Kong, you can free of any charge at the moment, after a couple more days there will be a simple 25 HK$ fee for doing so.

Details are here :

http://www.rcg.tv/html/eng/about/newsroom/investor_news/images/RCG_Letter_to_Shareholders_19_Jan%20v2.pdf

So if the AIM price does not keep up with the Hang Seng price, transfer over and sell over there, there are no restictions on the movement of stock between the two exchanges.

Thanks for that info Proselenes.
I've always thought that this company has some fundamentally good technology so it should recover - well done for getting in so low!

ProselenesI have a holding here can I sell in HK from uk or do I have to transfer 1st
Thanx

You have to transfer, as per the link above and the information on the web site.

It takes roughly 6 working days to go through the process, to have your stock on the Hang Seng and able to sell there.

Arbitrage will happen, however it will take time. Given the "6 working day" lag to move stock to the Hang Seng, the ability to not be able to trade your holdings for 6 days while this process goes through will be a "risk too much" for some people and instiutions.

So I do expect the process of the prices coming within 5% of each to take time, time that is where brokers in London happily buy stock from lazy PI's and short term traders willing to sell, and then move that stock and sell for a significant profit in Hong Kong.

The net effect will be less and less stock on the AIM, and more and more on the Hang Seng, and that will eventually level the prices to within say 5% IMO.

RCG have done this right IMV, by listing as a pure introduction, and allowing the Hang Seng to create demand, that will be filled by AIM selling. That was the big positive when news came that no new shares were being issued.

RCG is in the headlines in Hong Kong for two reasons, one being the big rises, and the second being Tony Chan and the Nina Wang holdings.

This creates some spice, and lots of media coverage.

Again, I say RCG have done the right thing by not issuing the results too soon, they have allowed the listing to happen, allowed the people to get to know RCG more by it being in the headlines, and now, when all eyes are looking, they can within the coming weeks issue results, and that should be the key for a very large dose of investor interest and buying, provided the results and outlook are as good as hoped.

So, for those willing to wait, I think we can be sure that whilst those willing to sell take quick profits, those willing to hold should be rewarded far more, as the AIM prices rises as more and more stock is transfered over to the Hang Seng.

Again, the coming results are the next major key event for me, and one which should generate many multiples of the present buying interest.

Bring it on, fingers crossed :)

Decent volume, over 10m taking in all exchanges. This should clear out the long term sellers on the AIM market who had caused the price to crash down.

There will be lots of noise over RCG, there has to be, simply as its highlighting just how bad the UK AIM market is, telling the whole world there is little liquidity there, there are very few buyers and its quite possibly one of the worst places in the world to have your company listed.

Now, before we all say how bad AIM is, the main reason for this is seen by outsiders are lack of regulatory process, exec's "getting away with murder" and other such nasties that can leave shareholders well and truly in the lurch. AIM was a market for "the unlimited credit times" - just have an idea and raise a few million and nobody cares if the company goes into the ground 12 months after listing. In the "credit crunch" times AIM is a market that just has "leftovers" on the table, and there is no appetite for them, and they are starting to go mouldy.

And before all the "Chinese stock rampers" start on about GNG, TAIH, CHNS and other dross listed on AIM and how they will "all go up" - we have to look more in detail at RCG.

RCG did a very non-AIM thing, they decided to list on the Hang Seng, a market that requires much higher levels of corporate compliance, with much more regulation - all the opposites of what AIM was using to get companies to list.

Many companies on AIM could not list on the Hang Seng, without some very major changes, changes which might expose a few skeletons in cupboards.

So now we are at "noise level high".

When RCG was trading at 150p I called it down, and went long at 32p - thats all very well documented over at TMF etc.

Note that when RCG fell from 150p to 30p there was little "media coverage, nobody cared.

Now that they are moving up fast, more and more is coming in owing to it highlighting just how bad the London AIM is for valuing companies. This does not mean that AIM will value other companies any different in future, thats not the way it works, what it does show is that good companies who are willing to be subjected to high levels of corporate compliance and strict regulation, will find their valuations grealty enhanced by listing on a main exchange.

It may mean the "end is nigh" for AIM, but so be it, you live by the sword and die by it.

Away from AIM and on to RCG, we will likely see lots of "how can this be" kind of posts, we will see lots of posts from short term traders trying to justify their sells, lots of people trying to justify to themselves why they took profits, and in general lots of nonsense written about RCG.

Firstly, owing to the rise they had to issue mandatory "no known reason for the rise" releases, one was released earlier on the Hang Seng, and later one on AIM too. This complete compliance, they have said no known reason apart from HK listing - you cannot exactly say "the company was valued at peanuts by a bunch of tossers in London and now its getting its value back" - can you ?

If we look at the company :

Its growing fast.
It has net cash.
Its paying a divi.
Its listed on an exchange with high levels of corporate governance (HKex that is)

A long term value investor should be happy to pay 15 times historic earnings for that and hold for future growth.

When results come out, earnings should be well over 2HK$ a share, or over 20p a share in UK monies.

Value investors therefore are right to buy this up to around 37HK$, or circa 300p a share.

Nowt wrong with the company, just been listed in the wrong place (AIM) for far too long.

And so ultimately, we come back to UK in general, pumped up house prices on pure credit fantasy, banks with no money but lots of debt, personal debt at well over a trillion pounds and a junior index, the AIM market, that was the playground (or was that payground) of anyone taking advantage of easy credit. Its now left with many companies that cannot list elsewhere, stuck forever in a place said to be "nothing more than a casino" by many around the world, and they will suffer with very low valuations for a very long time to come.

I say now, do not value RCG on what you perceive the AIM would value it as (although until we eliminate some of the leftover UK fundies needing cash urgently their continued selling will keep the value of AIM lower than HK, but only until they are gone), value it as you would a FTSE 250 stock, with the level of earnings it has, with the cash it has, with the divi it pays and with the growth its seeing.

As it stands now, its cheap on the Hang Seng at 25HK$, and very very very cheap on AIM, and lets get results out to highlight this and bring in more and more long term value investors. The transition has started, its going to take time, but it will happen, and before too long the majority of the companies stock will be on the Hang Seng, and not AIM.........IMV.

All IMO, DYOR etc.. !!

As of Tuesday we now have the HK listing and the shares have mushroomed. However the HK pice is at present 23HK$, which equates to 2, whilst AIM is quoted as 78p. What is going on and when will we get some parity? It must stabilise this week surely? Problem is the share has been far too lowly rated on AIM and HK investors obviously love it. But should one buy more shres on AIM?

Seems to have fallen to HK$16 after profit taking?

Nothing goes up in a straight line, always will be profit taking and pull backs.

Thats why the results statement is the next big key driver for RCG.

For those who want to see standard Hang Seng P/E's, and remember this is the average, not the extremes, and RCG fall into being "profitble, cash in the bank, growing" and so should be well ahead of the "average".

http://main.hsi.com.hk/hsicom/table/MnPEHSI.html

.

http://www.investegate.co.uk/Article.aspx?id=200902130700082466N

One of the directors taking up a buy of options, 400,000 of them at 136p each.

Thats a lot of money, and he could have purchased them cheaper on the London market, so one could speculate he must be confident of the future of the company..........

I reckon parity in the share price will be reached next week, otherwise most AIM shareholders will switch their listing to Hong Kong, which takes six days. Perhaps many institutional holders have already done so. AIM share price rising as I speak.

jab1tt

But if they switch and sell them over there, then the HK price will drop to fall more in line with the AIM I'D thought rather than the other way round.

That's possible but my point is that there will have to be parity shortly. I should think that such a disparity in the share price is virtually unknown and it does appear that the company will get a much higher rating in HK, bolstered by good results. If the higher rating in HK persists, AIM will have to come into line.

jab1tt

Well, for those who do not beleive the IT sector, of which high tech RCG belongs really, cannot trade at 30 times and 40 times earnings, here is the chart of IT PER ratios on the Hang Seng.

Patience and wait.......might be a year or two, but just think about the gains as Hang Seng takes over and drives the price up as more and more stock is transferred over there (taking it the company continue to do fine of course)

http://main.hsi.com.hk/hsicom/table/mnpehsciit.html

.

pp do we have a date for final results announcement, in previous years it has been either end of feb or around mid march?

Thinks its going to be mid-March.

Allow time for HK institurions and brokers to extract stock from AIM, transfer over to Hong Kong......and then be ready to feed lots of new buyers on excellent results.

This will help even up the 2 exchanges, as less stock will be on AIM.

pp tks, do you know what the free float is ignoring Madam Wang's estate shareholding?

Presently I would guesstimate its around 40%, and most of that on AIM.

What we need, and what hopefully happened last week, is Hong Kong brokers and institutions started buying on AIM, and will be, in the coming weeks, transferring it over to the Hang Seng.

The price differential makes it good business for them, and with results mid-March, there should be plenty of buying demand to sell it into.

From the South China Morning Post - looks like RCG is getting some media attention both here and in Hong Kong/China.

Very interesting to get the news from the other side of the globe Proselenes - thanks!

Some industry news on the RCG site :


http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_11.jsp

Over 60 countries issuing e-passport

15 February 2009, 23:00:00

By the end of 2008, over 60 countries have been issuing e-passport. The issuing of new e-passports was the initiative to replace existing travel documents in order to store additional information such as digital photographs and biometrics. The first country that issued e-passport was Malaysia in 1998, with other countries following in 2004. The last country to issue e-passport was Taiwan on 30 December 2008. Looking into 2009, a number of countries had already announced their initiative of issuing new e-passports, including: Canada, Croatia, India, The Philippines, Israel, Botswana and South Africa. New projects involve replacement of traditional passports, upgrade of existing e-passports to include biometric information and performance optimization. It is expected that more countries will adopt e-passports containing biometrics in the near future for improved border security. Source: findbiometrics; 2009 ePassport status: 60+ countries now issuing (30th December, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_10.jsp

Airport in 2016 is a combination of Mobile Communications and biometrics

15 February 2009, 23:00:00

Gadling, a website specializing in travel-related news has featured an article on the prediction of future airports. The author believed that biometrics and Near Field Communications (NFC) will be the dominant technologies, whereas biometrics is for airport and border security, NFC is for boarding passes embedded to mobile phones. Fingerprints and Iris recognition technologies are expected to dominate in airports for more convenient measures for border security. The author predicted that mobile phone boarding passes will undergo trials in 2009, whereas the fundamental infrastructure will be ready by 2011. The nationwide biometrics database may be realized at a later date, but larger projects in biometrics may be readily initiated by the private sector for more convenient authentication for checkpoints. Source: gadling; The future at the airport involves your phone, fingers and eyes (December 26th, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_11.jsp

RFID for monitoring glass bottles manufacturing

15 February 2009, 23:00:00

There has been an initiative in Britain to encourage manufacturers to lighten the load of the glass bottles used for food and beverages. The Waste andamp; Resources Action Programme caused problems to the manufacturers as glass bottles may break as a result of less glass used. RFID technology was adopted to solve the problem and the solution was introduced and provided to manufacturers which intend to follow the initiative. An RFID chip with sensors was placed in a glass bottle throughout the manufacturing process. As the bottle passed through various checkpoints, staff with the hand-held interrogators extract information from the RFID chip and the data was sent back to a centralized database for further analysis. The pressure, impacts and temperature experienced by the tagged bottle were monitored. Weak points were easily identified and the process can be further optimized to achieve a balance between breakages and efficiency. Source: rfidjournal; Smart Bottles Reduce Glass Breakage (Dec 29th, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_12.jsp

Jewellery retailer adopting RFID for security

15 February 2009, 23:00:00

A Jewellery retailer in India has recently completed a trial for the use of RFID to enhance security and improve inventory management for their products. Passive RFID tags were used for less expensive products and active RFID tags were used for luxurious items. RFID readers were installed within the store located in New Delhi for regular monitoring of store inventories. As part of the infrastructure, readers were installed in both the ceiling and under the floor at the exit. It will alert the store owner if the tags were removed, disabled or positioned out of range via email or text message. 100 percent security was said to be achieved by using RFID in the store, error rate was also minimized as a result of better visualization of inventory status. After the success of the trial, the company expects to adopt RFID for tracking in all of its stores located in other parts of India. Source: rfidjournal; Indian Jeweler Seeks 100 Percent Security From RFID (Dec 30th, 2008)

Posted by Tom Winnifrith at SC that Lucian Miers went short on RCG at 80p. He is happy to hold the short position as he feels the buzz will die down and many will sell asthe price stabilises and does not immeadiatly catch up with Hong Kong.

Well, I am happy to hold, knowing that results are coming in mid-March, and around 20p earnings are on the cards, along with a raised dividend and the potential that the share buyback will restart, and they will be buying shares from AIM, knowing later than issue on Hang Seng doing a......buy low, sell high.

Also, if Lucian and many others are short......I think they are also not stupid, and if the price fails to fall back much, they will be rushing to buy back before mid March gets near, in fear of results.

Enjoy.

pp interesting LM is short AND EK is long!

A few people have been asking how you trade stock in Hong Kong. Well, its quite simple, you open a trading account and fund it and trade shares. Obviously once your set up it makes any transfer process easier if you did want to send stock from AIM to Hong Kong.

I used to have accounts with HSBC and Hang Seng bank in HK, but have long since closed them down as most people did before 97 as the good times ended.

If you want to open an account in Hong Kong, you can, their banking system is quite open, only used to need a passport copy and away you go.

You can try looking at : http://www.hangseng.com/hsb/eng/home/hse.html

This will allow you to set up a Hang Seng Bank account, and likely all the "e-banking" and "e-trading" you want to.

Once you are set up, then you have a contact for which to send your AIM shares to, once you go through the proper process.

Have not done it myself, simply I am lazy and cannot be bothered, but I am sure it easy to do, opening accounts in Honkers was also easy, as was Singapore......it had to be easy, there is a lot of cash that finds its way into the Honkie and LaLa land bank accounts from rich Asians wishing to not have money in an account in their home country...........nudge nudge wink wink...... :)

I put this post on TMF :

http://boards.fool.co.uk/Message.asp?mid=11447249&sort=whole


I see in Hong Kong the price is up 20% today and trading around 129p levels. One key indicator for me amid all the talk is the simple fact a senior manager excercised options (400K of them) at 136p last week.

Insiders are nearly always the best indicator of the future, and if this bloke was happy to invest over half a million pounds (straight into the bank account of RCG) for options at 136p last week on the Hang Seng, then I am happy too.

As in my TMF post, shorters imv have been in control due to the spike and the market turmoil of the recent days, but they have to buy back at some point :) and then watch them chase the price upwards to close.

Up 14% on AIM now, wonder if a few shorts are taking profits and getting out before results get a little bit too close for comfort, cause really, who wants to be short of a stock with net cash in the bank, growing, and on a PER (soon to be historic) of times 3.

http://www.rcg.tv/html/eng/about/newsroom/business_news/2009_details_3.jsp

RCG receives award from Motorola

19 Feb 2009

RCG Holdings Limited (HKEx: 802, AIM:RCG), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that its subsidiary, RCG (Hong Kong) Limited has received a “Fast Growth Award 2008” from Motorola Enterprise Mobility Solution Division.

The award ceremony, held on 13 February 2009 in Xiamen, China, is an annual event aimed at recognising the growth of industry leading companies in the area of technology solution provider, RFID and wireless, which were also Motorola Enterprise Mobility Business Partners. RCG’s provision of RFID and wireless technology in its projects solutions segment utilising Motorola’s hardware and devices were exceeding expectations and so RCG won the award for its tremendous growth in terms of revenue among the companies joining the partnership program. Other award recipients included leading distributors and resellers in China.

Dato Lee Boon Han, Deputy CEO of RCG, said: “We are extremely pleased to have received this award from Motorola, as it signifies our successful business partnership. China has vast market potential for RFID and wireless infrastructure products and services provided by Motorola Enterprise Mobility Solution Division. The collaboration between our two organisations creates a win-win situation for both Motorola and RCG, and we continue to see future value as we both share the ongoing strategy of jointly penetrating this large market in China.”

Nice to see continued strength.

I think too many people have focussed on simply transfering and selling on the Hang Seng, and have not looked at it from an Asian funds point of view.

It was always said many Asian funds would not invest whilst this was just AIM, but they would if it was Hang Seng listed too.

Quite simply, if they buy in large quantities from AIM, transfer to Hang Seng, and hold on Hang Seng (no need to sell it), then they have "on paper" doubled their money in Q1 2009 performance charts, as the stock was purchased at AIM price, but is now held on the books at Hang Seng price after transfer (which for them is easy to do).

Which is why I believe the recent "strength" is quite simply that happening, for them there is no need to buy/transfer/sell. They can simply buy/transfer/hold.

And wait for the future, with an instant 100% gain on the holding on paper, which looks good in those "performance charts".

News out on the Hang Seng :


http://www.rcg.tv/html/eng/investor/investor_news/2009_details_12.jsp


Date of Board Meeting
25 Feb 2009

In compliance with Rule 13.43 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the board of directors (the ‘‘Board’’) of RCG Holdings Limited (the ‘‘Company’’) hereby announces that a meeting of the Board will be held at 1507, AIA Tower, 251A-301, Avenida Commercial De Macau, Macau SAR on Wednesday, 11 March 2009 at 2:00 p.m. to, amongst other matters, approve the publication of the final results for the year ended 31 December 2008 and consider the payment of a final dividend.


By order of the Board of
RCG Holdings Limited
Chau Pak Kun
Director

Hong Kong, 25 February 2009

Confirmed now, results on the 12th of March.

http://www.investegate.co.uk/Article.aspx?id=200902250700177751N


.

sp in Hongkong falls to HK$8.80

Yes, more and more are selling stock on the Hang Seng. So as more AIM stock moves over then their SP will fall to meet the AIM one.

However, the big driver for Hong Kong buying is coming soon, and thats the results, so in a couple of weeks the Hang Seng should be seeing lots more volumes of buys, and so, the price will rise on both AIM and HKEX

Some nice news today, the new HQ and Production Centre in Malaysia is finished. This should contribute to improving margins in later 2009 and 2010 onwards......all good for increase profits, or retaining profit levels in hard times, as you will note from the comment "substantial cost savings".......


http://www.rcg.tv/html/eng/about/newsroom/business_news/2009_details_4.jsp


RCG completes building development for new Malaysian HQ and production centre
27 Feb 2009

RCG Holdings Limited (HKEx:802, AIM:RCG), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that it has completed the building development of the RCG Tower, the Company’s new office headquarters and production centre in Malaysia.

Located in Selangor Science Park, an area hosting high-tech industry in Malaysia and occupying a total gross floor area of approximately 18,960 square metres, the RCG Tower will house RCG’s factory, showroom, warehouse, after-sales service centre and head office. The Tower will replace RCG’s existing production and other facilities in Kuala Lumpur, centralising all Malaysian final assembly, R&D, after-sales and back office functions as well as the majority of administrative functions.

A handover ceremony was held on 20 February 2009 to mark the completion of the building development. Kuala Selangor Development Sdn Bhd, the building developer, presented a souvenir to RCG marking the completion of the building development. General Dato Seri Moh’d Azumi, Dato’ Lee Boon Han and Mr Lawrence Ying, members of the Board of Directors of RCG, represented RCG at the ceremony.

Mr. Raymond Chu, Chairman and CEO of RCG, said: "We look forward to moving into our newly developed and expanded headquarters in Malaysia. Our new facility will host administration, R&D and production under one roof and will help us improve the quality and reliability of our products and solutions and in the long run help us realise substantial cost saving."

Its good to see the Hang Seng volumes rising up as the price has neared the AIM price, obviously the internation arbritrages have done their job and purchased AIM and sold to Hang Seng.

There is only about 40% in the free float, and it seems that an ever rising amount is now on the Hang Seng, telling us stock is being moved over.

If you take it that now over 11% (of 40%) is now on the Hang Seng, and this figure has been rising steadily, thats proof.

You can check on this site searching for stock code 802

http://www.hkexnews.hk/sdw/search/search_sdw.asp

So, as we see, as the AIM price reaches parity with Hang Seng, so Hang Seng voumes rise, so lots of people previously not willing to buy on Hang Seng at a higher price are now willing to buy as the price reaches parity with AIM.

Still, results are just a couple of weeks away (confirmed 12th March) and we had a senior manager take up options, 400K of them, at 136p recently.

The outlook should therefore be very strong, and now we have parity, the prices should rise together on some good results.

The good thing about results is it will also "fill in" missing data on many Hong Kong financial sites, who are presently missing historic data etc.. as there have been no results from RCG on the Hang Seng. So once results are out, all the boxes will be ticked and people can very aware of the low rating RCG is on, which should be the sparks to light the fire of more and more demand from Hang Seng investors.

Not long to wait now.

Feb 2009 Newsletter just out.

http://www.rcg.tv/html/eng/about/newsletter/2009feb.jsp

A few highlights from it :

........M30 Securing Hong Kong Residents in Henderson Property

RCG has reached an agreement with Henderson on a new project contract to provide fingerprint door access devices at one of client’s new residential buildings located in Sh...............

............E-leave system debut at RCG Malaysia

RCG announces the debut of a newly developed web based e-leave system, which allows employees’ daily attendance update. Employees are also able to make leave application through the new web based system, while HR department will be able ...........


..........Safe-keeping of China Construction Bank’s Asset by RCG

China Construction Bank (CCB) has recently adopted RCG’s self-developed RFID asset management system. Being one of the leading banks in PRC, CCB offers comprehensive and professional services to its customers. In the meantime, its expanded business and asset management call for im.............

.............RCG ME Awarded New Project Contract from Sigma Pension

Based on the successful implementation of time & attendance system at the Code of Conduct Bureau in January 2009, RCG ME announces a new project contract has been signed via our distributor – Toplink (Tagged Technology) with Sigma Pension, Nigeria.

Sigma Pensions is one of the license..................



Thats just a few bits, so lots going on around the world, well worth a read of the newsletter.

Impressive move into a major new potential market.

http://www.investegate.co.uk/article.aspx?id=200903020700180540O

RNS Number : 0540O
RCG Holdings Limited
02 March 2009

RCG launches RFID solutions into the financial services sector

New clients include China Construction Bank and Bank of China

RCG Holdings Limited (HKEx: 802, AIM:RCG), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that it has successfully launched its radio frequency identification ('RFID') technology into the financial services sector. The Company recently won contracts to supply and implement three technology solutions to improve on-site bank security and cashbox security, and to enhance customer experience for two of China's leading banks, China Construction Bank and Bank of China.

The contracts are part of RCG's growing portfolio of projects in Asia Pacific and the Middle East, which already cover the healthcare, transport, property, media, education, and entertainment industries.


Bank security

RCG, in collaboration with Hewlett-Packard (HP), has developed and deployed an IT Asset and Data Security Management Solution for the data centre of China Construction Bank ('CCB'). The first of its kind in the financial services sector, the solution combines location monitoring and tracking, data security and access control to improve security in the bank premises. It combines RFID technology in managing IT assets within data centre with real-time monitoring and visualisation capabilities. The solution incorporates secure access control measures into the system which enables the monitoring of authorised personnel in accessing data and eliminates data theft and tampering.

The system involves a specialised RFID antenna which RCG fully developed and the patent application for which is in process. The sophisticated solution has been designed to be highly scalable to a range of industry needs and adaptable to any data security requirements.


Customer experience

In addition, RCG has successfully implemented its VIP and cashbox management solutions at the Bank of China ('BOC'). RCG has developed its VIP Management Solution with the aim of improving user experience. As bank customers pass through the entrance, RFID readers identify the customer and alert customer relations managers so they can offer personalised banking service.


Cashbox security

RCG's new Cashbox Management System ensures the security of cashboxes at any stage of their transport between banks. The system utilises RFID technology to track and display individual cashboxes. It monitors and tracks the cashboxes being transported between locations and alerts the staff upon their arrival. The solution is also highly scalable and can be adapted for managing other assets in any industry. The system deployed at the BOC has been fully integrated with the bank's current operation, in particular the bank's existing customer relationship management programme. With the new system the bank can now improve its operation efficiency and security without additional efforts to adjust its core operations, while also enhancing its reputation by providing high-quality VIP service.

Raymond Chu, Chairman and CEO of RCG, said: 'We are delighted that we have successfully launched our pioneering RFID solution into the banking industry, and that two of the most prestigious banks in China have adopted our solutions. Our competitive project solutions are recognised by our banking industry clients as being ahead of current practice. We are also pleased to collaborate with HP in developing a solution that meets industry needs and exceeding their expectations.

We believe our pioneering RFID solution will set a higher standard for managing data security in the banking industry. We expect that we will redefine the standards in the adoption of RFID, one of the fastest-growing technology industries worldwide.

These developments are recognition of our efforts in providing highly value-added solutions for the Chinese banking sector. They show that we have been operating in the right vertical industry and we expect to continue to benefit from the rapidly growing Chinese market in the years to come.'

Noted by Zak Mir over at SC that RCG is heading for a "Golden Cross" moment with the 50 dma (red line) heading over the 200 dma (green line).

With results on the 12th of March being a key event, this could be one of those big moves up and Golden Cross...........

sp HK7.25 will it fall further if Hang Seng falls on tuesday after disappointing results from HSBC?

Its worth reading the Hang Seng listing document, but for thos who cannot be bothered this is one highlight from it :

Full Document : http://www.rcg.tv/html/eng/about/newsroom/investor_news/images/RCG%20fullset%20Eng.pdf

Extracts :

Page 11

In light of the current global economic crisis, the Directors have been monitoring the trading and financial position of the Group. There has not been any material reduction or cancellation of the Group’s orders in the third quarter and fourth quarter of 2008 when compared with the corresponding periods in 2007. As at the Latest Practicable Date, the Group had not received any material cancellation of orders. The Company is also not aware of any of its existing suppliers or customers being in liquidation.

As at the Latest Practicable Date, the Group had not received any notice from its lenders in relation to an actual or threatened withdrawal of lending facilities, or for early repayment of outstanding loans or request for additional collateral.

The Directors will continue to monitor the Group’s financial position. In light of the above, the Directors consider that the trading and financial position of the Group in the near future will not be adversely affected in any material respect by the current global economic crisis.

pp you are ignoring market sentiment.

RCG is up.

Its now at parity with the Hang Seng and circa 66p a share.

And results are coming soon........wait until the results are seen by the Hang Send and Asian investors........and also wait for the directors to be able to buy stock too.

Interesting times ahead......... :)

Presently up on the Hang Seng at at 7.65HK$ levels = 70 pence.

http://www.google.co.uk/finance?q=HKG+0802

.

Checking on the Hang Seng, it now appears of the 40% free float, 12% is now registered on the Hang Seng, so the remaining 28% is still on AIM presently.

However, as each day passes more stock goes on to the Hang Seng, each day the percentage gets higher.

You can check on this web site : http://www.hkexnews.hk/sdw/search/search_sdw.asp

Searching for stock code 802

+++++++++++++++++++++++++++++++

60% of the stock is locked away by Offshore, Veron and the CEO (Full future) as per the main shareholdings :

http://www.rcg.tv/html/eng/investor/shares_information/index.jsp

Veron International Limited======64m=27.5%
Offshore Group Holdings Limited===62m=26.6%
Full Future Group Limited========18m=7.7%

The remaining 40% is what is on AIM/HS and so its presently 28% AIM and 12% Hang Seng.


We can know where the AIM weakness is/has been/could still be coming from, as it appears Blackrock Merrill Lynch are still selling, needing cash. If you look at their last holdings RNS, you will see the updated (24th Feb) information on the web site is a lower figure than the last RNS, so they have sold more since that RNS was out. They will next notify when they go below 3%, however, they can hold off this announcement for some time, meaning we will not know if they have 2.99% left or 0.01% at the time the holdings RNS comes out.

Roll on results...........12th March.
.

pp steady selling ahead of results?

Steady selling all along, which is why the SP went down to 30p levels, lucky there is a buyer too recently since the HK listing , and so the price is nice and stable between 60 to 70.

The big change is with results, and hopefully that will clear out Blackrock Merrill Lynch and by clearing out the seller, the price can move up a whole lot more and not be range bound below 100p anymore.

pp why is BML selling ahead of results next week when these results are supposed to be good? Are they stupid or do they kow something we don't?

halifax, BML have been selling for many months.

Its called "the credit crisis" and its why investment companies have been selling for many months many stocks and created the "stock market crash" that you see.

The markets go down if people sell, and lots of people and funds are selling, so markets fall.

The good thing is, in the face of BML selling, the SP is now going upwards and stable, which means someone else is buying.

If you had not noticed the headlines, I think you might find ML are in some "financial troubles" perhaps.............

A search today shows a jump on the Hang Seng from 12% of the 40% free float, to now 12.5%, so another 0.5% of the total shares in issue was moved from AIM to Hang Seng yesterday (or lets say the process completed yesterday, the transfer would have happened some time ago).

At this rate we should hit 20% Hang Seng / 20% Aim in a few weeks time (taking it that 60% are locked away with the big holders Veron/FF/Offshore).

People are saying "classic bullish pennant" on the charts, soon to be "golden cross" etc... but there is reason behind the TA.

A seller is selling and buyers are buying, creating a "pennant" at a higher value than the share previously was.

When the seller is cleared then yes, the SP should zoom upwards, so the "golden cross" could be completed.

Also we have results on the 12th March which could signal the buying to complete the bullish pennant and also the golden cross by clearing out the seller (who appears to be ML).

Once results are out, Asian investors have figures and outlook to base a decision to invest or not, directors and insiders can, if they want to, buy, and the company too can resume their share buy back programme.

All in all, fingers crossed and something not going wrong, yes, the outlook short and mid term is quite bullish for RCG.

Well its results week, and the week starts well on the Hang Seng, impressive volume and rising fast on the Monday morning in Hong Kong, lets hope this is due to more "outsiders" becoming aware of the potential in the results as they go through their approval process prior to release.

Roll on Thursday, lets see what Raymond has to say.

Good proactive move by the board.



http://www.rcg.tv/html/eng/investor/investor_news/2009_details_15.jsp


Letter to Shareholder

Q&A session on the day of results announcement

9 Mar 2009

Dear Shareholder,

In our effort to further improve communication with our shareholders, we would like to propose a Q&A session to be added into the preliminary results presentation on the day of results announcement. Similar to last year, we will be audiocasting the preliminary results presentation, and will allocate a slot for Q&A at the end of presentation.

If you send us your top few questions on email to ir@rcg.tvon or before 8 am on 12 March 2009 UK time, we will select and combine the frequently asked questions (FAQs) from the questions received on a no-names basis, read-aloud and answer them during the audiocasting.

You will be able hear our answers from the audiocast which we will publish in the investor relations section of our website within one week from the results date. Due to limited time and the possibility of receiving a large number of questions, we can not guarantee that we can answer all of your questions however we will carefully select questions repeated by many shareholders.

We are looking forward to receiving your email and thank you for your continued support of our Company.


Yours truly,

Anita Chau
Deputy Chairman and COO



For further information:

RCG Holdings Limited
Anita Chau, Deputy Chairman & COO
KC Chong, Chief Financial Officer
Tel: 852 3669 6999
kcchong@rcg.tv

Media enquiries:

Abchurch Communications Ltd
Chris Lane / George Parker
Tel: +44 (0) 20 7398 7719
george.parker@abchurch-group.com

Some positive momentum building ahead of results.

halifax, have you just purchased again ?

You appeared to go negative the past couple of weeks, and now positive again, you did not sell at 60p and buy back at 70p today did you ? ;)

pp have been back in for sometime and have recently topped up.

Added the Hang Seng RCG chart to the header for info.

pp with the HK$ pegged @7.8 to the US$ as GBP falls against the US$ RCG's sp in stg should rise.

last chance to get in before results on thursday!

PDF format here as released to the Hang Seng market, the AIM announcement will be at 7am UK time today.

http://www.hkexnews.hk/listedco/listconews/sehk/20090312/LTN20090312005.pdf


Looks fine, dividend has been put up 200%, and rightly in my view in this enviroment in scrip.

Cash generation from operations is strong.

EPS works out at over 25p.

Still growing strong.

Cash generated from operations is sufficient to fund the expected growth for the year ahead.

Larger amount of enterprise/solutions revenues in the second half as they reduce reliance on the consumer market.

Ended the year with net cash in the bank of around 12m pounds (thats after the new office and plant in Malaysia costs, buying the remaining stake in Chance Best and the increased stake in Vast Base).


Going forward 2009 should see :

Major contribution from Vast Base in 1st half and 2nd half - this should be the proof in the pudding of the purchase cost.

Major cost savings from the new Malaysian base kicking in in the 2nd half.

On the downside an increase in tax rate will happen due to the Hang Seng listing.

On the downside the move into higher weighting of enterprise/solutions will see higher demands on working cap, as is already being seen, but they remain confident that the cash generated from operations is sufficient, on the upside of that should of course be higher margins.



In basic you get a cash generative growing business with cash in the bank of 12m pounds and all for a PER of under times 3.

Not many of them about in the current climate.

Given the results and looking into the details I remain very bullish about RCG, and especially into the short term, I think that there will be perhaps a stunning performance from Vast Base in the 1st half of 2009, and the interims are really going to be special, thats just my opinion.

Proselenes -It would seem that even with all your ramping of this company, the share holders don't agree. Seem very red this morning.

I'm staggered that anyone should think the MM's are going to allow an sp of a small company go up in this market. It really doesn't matter if they have an eps of 50p it won't make the slightest difference, the sp will go down.

AIM is dead and buried by and large atm and it won't change til market conditions improve. Take a look at GWP. On yestreday's news the sp should be close to 1 but after a short rally it is being thumped today.

I like this company and would love to buy it but there is no chance of doing so atm.

dealerdear, the company are now doing the rounds with institutions, and hopefully they will be able to talk both Asian and UK institutions to buy into the story.

I am very happy to wait for the hot money to run out, and then allow the serious buyers to mop up the shares.


Balerboy, its very easy to be tempted to lock in profits, I am sat on 100% profits, but I think that Vast Base is going to astound people with theri 2009 1st half performance, and so I will wait now for instutions and interims.

Do not forget, a senior manager recently purcahsed 500K sterling of stock for 136p a share......I think he knows the future better than most.

Turn in a cracking set of figures GROWTH GROWTH GROWTH
WHAT DO PEOPLE WANT WHEN EVERYTHING AROUND THEM SEEMS TO BE CRAP
HOLDING 100K AND TOPPING UP

As I say I like but have no intention of buying until market conditions improve. The MM's are pricing into all companies the possibility of going bust during a depression.

700202, buyers will wait.

They know that likely a load of weak short term holders will sell on results, so no point buying until late morning, or tomorrow, maybe even next week.

Let the weak sell a cracking set of results, then buy.

The link to the results presentation and questions is :

http://www.investorcalendar.com/IC/ClientPage.asp?ID=142280

Well worth listening to.

I have, since seeing the reaction to results in Hong Kong, sold 80% of my holding. Its worth me doing it as it locks in 100% profits, and keeps 20% in there as a "average down" tool to any next purchase.

The response in HK was a little underwhelming, which points to institutions there holding fire until the Wang case is resolved. Quite simply they will look to an opportunity to gain big lumps of stock at a decent price once the Wang stock is sorted out, so there could be a placing later in the year to offload the Wang stake, bring HK and Asian institutions on board and also possibily for some additional cash to chase bigger projects.

Therefore it made sense for me to lock in the profits in cash, but retain an interest as the company still looks very strong going forward.

rising to 57p +3.50p after closing higher at HK

the Indicators were pointing to move this way since late last week, I selected the shares last Sunday for the - FANTASY PORTFOLIO - BIG GAINS FOR 2009 - at 53.375p

Nice to see this one still rising. I sold out my main holdings in the 70's and 60's on the big rise (after getting in on the low 30's it just had to be done locking in over 100% gains), and dumped the scrip awarded shares last week, so presently all out.

Lots of speculative buying ahead of any court case judgement, but of course if one is not forthcoming the hot money will depart again just as fast, so will watch with interest.

good contract win see RNS interims due next month.

Interim results link here :

http://www.hkexnews.hk/listedco/listconews/sehk/20090910/LTN20090910011.pdf

A number of negatives in there that people can take if you want to look past the headlines, which likely explains the "mute" reaction to the release on the Hang Seng this morning (RCG presently positive just 1% and getting weaker as time goes by, might finish down if this continues.)

Terrific results overall. 16p EPS in H1 alone!

http://www.investegate.co.uk/Article.aspx?id=200909100700058103Y

The outlook is very bullish, so an annualised EPS of say 32p+ EPS compares with a 75p share price, up nicely already today.

It's ridiculously cheap imho.

good results but no dividend again.

Some good comments by paulypilot, wshak etc.. on this web site :

http://boards.fool.co.uk/Message.asp?mid=11672623&sort=whole

..........

Author: paulypilot Number: 123720 of 123731
Subject: Re: RGC Interims Date: 10/9/09 17:46

Hi,

Have to say I agree with Zakmundo here. I've always been sceptical about RCG, but did buy a few a while back, just to be part of the action &it did look astonishingly cheap on a PER basis.

But the figures today just don't look right. Debtors are just way, way too high. Practically every time in the past when I've tried to justify an investment where the company has an inability to turn profits into cash, it's ended in disaster.

To my eyes, something looks very wrong with RCG, hence sold out this morning.
The other alarm bell was in the narrative, when they spend a paragraph discussing how beneficial to the share price the dual listing has been. For a start, management should never include commentary about the share price with results - the share price is for the market to decide, their job is to run the business. And I don't like dual listings for anything other than mega caps, as it duplicates costs.
But with the case of RCG, their comments on the share price clearly imply that they are happy with the current share price! But if you believe the numbers, the current share price is about one fifth of where it probably should be (if the company was generating cash).

Regards,
Paul.


Author: WShak Number: 123722 of 123731
Subject: Re: RGC Interims Date: 10/9/09 19:52

I completely agree with Paul on this one. RCG simply has too many of the wrong boxes ticked to merit serious consideration as an investment.

1. A leader with an extremely dubious reputation, if the Wang case is anything to go by.
2. Profits which don't translate into cash.
3. Incestuous investments in companies that are then responsible for buying licenses from RCG itself.
4. Strange obsession with the share price.
5. Large investment in Malaysia offices when the money could surely be spent more profitably elsewhere.
6. Very strange scrip dividend announced earlier in the year for no apparent reason.

RCG have had plenty of opportunities to throw off a bucketload of cash but they always seem to find a reason not to.

As Zakmundo says, it's either the cheapest stock on the market or there's something wrong.

I think there's something wrong. If there wasn't, somebody somewhere would be accumulating it in size.

WShak

.................

SHARECAST) - Surveillance software firm RCG Holdings shrugged off difficult trading conditions to produce strong growth in sales and earnings in the first half of 2009.

Revenues in the first six months of the year rose 31.4% to HK$1,293.7m (111.6m) from HK$984.4m (63.9m) a year earlier, with Greater China providing most of the growth.

China is the key driving force in economic growth, deputy chief executive officer Dato Lee Boon Han told Sharecast. The government has spent 4 trillion yuen on improving infrastructure and we are benefiting indirectly from that, Lee added.

The Hong Kong and London-listed firm said it is looking to focus more on Indonesia too, where the economy is developing nicely, while management sees lots of exciting opportunities in Nigeria, a market in which the company is a relatively new player.

Profit before tax improved to HK$380.5m (32.8m), up 18% on the HK$322.5m (21m) achieved in the first half of last year.

The group will continue to seek to grow both organically and by acquisitions. Quizzed on what sort of size acquisitions the company looked at, chief financial officer KC Chong told Sharecast that when contemplating acquisitions, it was more a case of finding companies that offered collaborative opportunities.

If a company has a licence for a product in a particular country where we want to expand, and the product fits our area of expertise, we will look at it, Chong explained.

The company does not pay interim dividends.

Security software specialist RCGs interim results were better than expected, prompting Evolution Securities to reiterate its buy recommendation on the shares without hesitation.

Evolution analyst Philippe Geronimi pinpoints China as the source of nearly all RGCs sales growth in the first half. Sales to Greater China amounted to HK$464.4m, up 153% yoy [year on year]. Southeast Asia, on the other hand, saw flat sales of HK$577.1m. Performance in the Middle East was encouraging with revenue of HK$247.3m, up 24% yoy, Evolution notes.

Down 4% which was to be expected. A bad October on the markets and with the Hang Seng getting bubbly, we could see RCG down in the 50's by November.

Any idea why sp jumped this morning, 80+p not what we expected

RCG were up 15% to HKD10.56 in Hong Kong overnight on heavy volumes of almost 5m shares - RCG are doing an investment roadshow over there which appears to be impressing institutional investors:

http://finance.yahoo.com/q?s=0802.hk

Given that after 16p EPS in their terrific interims RCG are on course for over 30p EPS this year the current P/E remains at only around 2.7 at 81p.

A re-rating to a P/E of only 5.4 would see a doubling of the share price to 162p.

and pigs might fly....

:o))

I bought at 30p when RCG was similarly undervalued, and now it's 81p. A doubling from here to 162p would put it on a P/E of 5.4 based on 30p EPS this year.

It won't take much to move it if as seems to be happening the Asian institutional investors become interested..

Surging now, up to 93p - led by Hong Kong, with 2m shares traded and having broken through the HKD12 level.

At 93p RCG are still on a P/E of only 3.1 based on 30p EPS this year, having achieved 16p EPS in H1 alone.

And much of the m/cap is covered anyway bu substantial tangible net assets.

A doubling from here would see a p/E of just 6.2 - and a 186p share price.

Shares weak in Hong Kong today, might be this story and the fear that Tony Chan might start selling RCG and dumping lots of liquidity into the market with might create a mega overhang.......


http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=88206&sid=25454818&con_type=1

Wednesday, September 23, 2009

Fung shui master Tony Chan Chun- chuen continues to sell assets amid his legal battle with the Chinachem Charitable Foundation for the estate of late billionaire Nina Wang Kung Yu-sum.

Chan has been offloading personal assets since the financial tsunami hit late last year. He is reportedly strapped for cash after making investment losses.

The latest move is a possible disposal of his entire 62.32 percent stake in UURG Corp (8192). In previous months Chan sold properties worth more than HK$400 million.

UURG - an information technology and engineering consultancy services provider - said yesterday that Chan was considering selling all his shares. Such action may result in control of the company changing hands.

The firm's shares, which resumed trading yesterday afternoon, rocketed as much as 53.8 percent before closing at 24.1 HK cents, up 23.59 percent on turnover of HK$12.48 million compared with HK$5 million last Friday before trading was suspended.

UURG - which is listed on the Growth Enterprise Market - said Chan entered into an agreement with a potential buyer to facilitate due diligence up to October 1 and that Chan had received a non-refundable deposit of HK$500,000.

Chan's wholly-owned Marilyn Investments and Offshore Group Holdings hold his UURG shares. Marilyn, through its wholly owned subsidiary Almond Global, holds 2.52 billion shares, or 45.26 percent of UURG. Offshore holds 950 million shares, or 17.06 percent.

Almond also holds a convertible bond in the principal amount of HK$2.9 million which can be converted into 5.8 billion shares.

In July, Chan sold a luxury home at Severn 8 on The Peak for HK$230 million, or HK$45,000 per square foot, after buying it for HK$167 million in 2006.

He also reaped a total of HK$178.5 million by selling a house at Royal Oaks in Sheung Shui and a house at Middle Gap Road on The Peak.

In January, he received HK$203 million for a top-of-the-line Gulfstream jet that he bought for HK$265 million in 2005. He is also said to have sold two yachts.

ell if the recent rise has been in expectation of a court room settlement of the will, its not going to happen for a lot more months to come. Later this year or early next is the guidance from the judge on when the verdict will be given.


http://www.examiner.com/examiner/x-11031-Orlando-Feng-Shui-Examiner~y2009m9d23-Who-will-inherit-Nina-Wangs-estate-Chinachem-Charitable-Foundation-Ltd-or-Feng-Shui-adviser

Who will inherit Nina Wang’s estate: Chinachem Charitable Foundation Ltd. or Feng Shui adviser?

September 23, 3:55


Nina Wang (AP photo)40 days of courtroom battles are over having left the question of who will get the multibillion-dollar estate without an answer.

Nina Wang, the richest woman of Asia and the 204th richest person in the world, according to Forbes, died in April 2007. After her death, two wills were................................

Placing to raise cash, at a discount to the present SP.

Has to be proof to the disbelievers that the company is in cash flow problems. Who wants to raise money at such a low PER............bad dilution.

Could be more bad news to come in the next financial results release perhaps ??

News out this morning in Hong Kong media regarding the Nina Wang holding. Tony Chan (Raymond Chu's friend) has lost the case and Chinachem have won.

This moves all those RCG shares out of the "friends of RCG" hands and into Chinachem hands, which may mean they will now sell the complete holding of free shares they have inherited and get the cash.

RCG down in Hang Seng trading on the news.

Could see a sell off on London too.

Possibly 50% of the total shares in RCG could be "dumped" on to the market soon !! This has to be the start (or mid period) of an SP collapse.

http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=159184&Itemid=79

.............Ricky Tam Siu-hing, chairman of the Hong Kong Institute of Investors, said volatility in RCG's share price in the short term was expected as 50 per cent of the shares could suddenly end up publicly available.

"At the moment we don't know if Chan will have to sell his stake in RCG to pay for his legal fees while the share price of RCG is still quite high... there are reports that Chan has been selling some of his PROPERTIES [] in the last two years to this end," Tam said.

Since Veron was now owned by the foundation, it was possible Wang's RCG stake could be sold under pressure from the family, he said................

Vector Anaylist reccommend sell 9.2.10 sums done at 65p
more weakness maybe as i said dec 09
No divi in coming results, remain hopefull

the black bird

Results out in Hong Kong already, cash generation poor, no dividend to be paid, gross margins down, marketing expenses through the roof.

Hong Kong not impressed and RCG well down on the Hang Seng.

They seem to be permanently short of cash?

Nice move up (25%) the last couple of days.

dec 12th rcg cash flow end year march report cash flow per share 0 . 125

or 1.25 pence per share end year 3. 8 m divide by no of ords 300m

per haps a more in formed one would like to correct me the black bird