http://www.rcg.tv

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

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

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

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

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

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

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

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

you an an utter twat Papal power.

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

Sad people.

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

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

DYOR.

what a buy tip