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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


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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.