http://www.rcg.tv

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




Turnover

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

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



Profit after Tax

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

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



Earnings per share

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

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



Inventories

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

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



Trade receivables

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

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



Cash in the bank

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

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



Margins ?? (OP / Rev)

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

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



Net Cash Gen From Ops in terms of Profit After Tax

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

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



Cash Generated From Ops Against Turnover


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

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




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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Some of those "worrying" imo, posts.



"Mon 11:57

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

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

"Tue 15:38

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

good luck

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

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

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

i didnt realise that halifax had a suit.

Sold out and got my money back at last!!

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

Nice to see this exactly where it should be.

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

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

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

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

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

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

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

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

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

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

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

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

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

This will soon be more than just an AIM stock.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

you an an utter twat Papal power.