.

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.