The RNSM announced that it had sold its old factory site for ?8.575 million, which is way above the value shown in the company accounts. It looks as if this will increase the companys Balance Sheet value by approx. 35/40%. The companys Market value (based on the current share price of 42p) is under ?10 million, whilst the Balance Sheet value will be approx. 15/16 million.
This would seem to indicate a seriously undervalued (and cash rich)company.

I take interims to be short term negative but main movement this morning has been in buys, although at reduced price, then the clear out of directors .. what do others think?

The first thing that will happen is they get headhunters to find a new replacement for Tim Dye they will then figure out how much the recall will cost them ie loss of revenue and the hard cash spend down at witham on wages and loss of product.
During these uncertain times while this is happening i reckon the share prices will stay sub 15-16p but i could be wrong !!! While it is down at these levels and a pedigree of over 160 years behind it a takeover is very possible as you could pick up a potential long term sound business while it is down on its knees.

I still reckon the biggest shareholders ie Wilky and the others who had taken a large amount in shares as part of various takeover deals in recent years could not be happy with seeing there money evaporating away,neither would most people and i think they could well have asked him to step down,that is my theory anyway.

2008 is going to be interesting times for RNSM and i hope that they do turn it around to how it was a few years back.

Mega..........

tipton11,
Nice of you to ask. I don't really follow blow-by-blow although it's one I've known since TimDye was hailed as the Master of fragrances.
Clearly the co has lost its way with the Regulartory situation and the Brands appear to be somewhat tarnished and costs are increasing. Therefore, whilst it might be nice to look for 20p recovery, I cannot see any reason why - The Dividend has been stopped and their loan is costing valuable cash. Also, there was some issue with Inland Revenue - who are well known to bleed a Co dry even if it then goes under. (There seems to be no joined-up Government on this.)
If the Market over-reacted to 8p, I would still be willing to buy at that price, although I haven't bought anything since abt. Sept07....believing all stocks are "tired and weary" - and until we Punters get that "Feel-good" - all stocks will be punished. If the price is sub10p in Jan I might be tempted, but theer are other bargains out there which are close to Approval ( Like CeNes?)- so why risk it on stinking creams?
[Note Dermasalve[DRM] and Disperse(RIP) have both shown cosmetics is RISKY, although I'm a sucker for a good story - - - WHAT is the good-story for RNSM..? ]

At today's. 12p I think there is much more risk; "spread" for a start. Today's drop is TD stepping-down.
Will he be selling-out shares ( just now?), or receive a vast reward/Pension, which will add to the Co's cost-woes. They need a new bod at the top and that creates "uncertantity" - so until that's resolved the sp may drift again ( on No-News). Even then it takes 6+ Months for anything to filter through to the P&L Account...meaning that nothing good will appear in print until Dec. 2008 ! . . . . . . . . . . . Does anyone know their Cash/Debt position?

Megabucks - -I don't think the Co "Pedigree" matters, (sorry), for you could say that in that time, they should have done better. However, your points of "uncertantity" are very important and I can only see these prices being attractive to those that bought say a year ago - once Av.Dn.-ers have bought there will be little FRESH-interest in these "risky" shares.

I suspect the "rot" set-in a year ago - so you could say that the SP (then) was overvalued....which makes current prices something rather less than attractive, since we cannot know what the SP would have been, if the Market knew what was unfolding. They managed a deal with Medisys some months ago and that was what prompted me to make a comment (having lost a lot through their bungling) - and you know what? It looks like the Ransom-effect has struck this stock, as predicted in so many words.....oh dear.

hangon .... your analysis was very helpful but I think too soon to buy in even @ 8p ... not often I get it right so quickly in @ 9p and out at 14.84p seven days later.

Hi Hangon et al: Having bought on the 12th, thinking it might recover, I then noticed on L2 the following day that it might not, and so sold again at a modest profit - which I always reckon is preferable to a loss. The subsequent RNSs on the 19th confirmed that there is still some way to go before the sp heads up again (if it does!). - Sorry I don't always have the time to update here but see that Hangon has posted a good analysis.

With companies like this, there is money to be made if you have the time to keep a close eye on things - sometimes sell within hours of having bought.

In hindsight you are right; but time and time when I've attempted this I've missed the sell-point. With spread, it means I'm quickly negative...and locked-in another loser . . . . arrgh!
I cannot see why this stock is now worth 50% more than a few days ago.....( sp rise today)...it's just as likely there will be some news to dent the prospects - and whatever happens it won't be in good health for 12 months, maybe.

Bad fall again today ( due to Banking issues Worldwide), and so on. sp 9/10p with just 3600 worth traded - looks like a bit of a nasty cold.
/
Oh dear - mind-you better than the minus 30% for Pipehawk[PIP] which is a similar shambles.....and probably having even fewer customers.

The shares have been suspended pending a possible cash takeover of RNSM which was expected and way over due but the thing that really concerns me about the current situation is having to go to the banks for what is really money to keep them afloat.Because they sold the only crown jewels they had the Hitchin site they have nothing else to raise money against really without selling some possible brands,this is only my opinion could Tim Dye the former CEO be lurkin could be/maybe or neither but it is a oportunity to pick up a bargain he has contact's

Anyway in the coming days and weeks the mysteries will unfold :-)

Mega.........

Looks like a"goner" imho.

I have just consulted my Crystal ball and Ransom shares will resume tomorrow on the AIM market and this crystal ball also tells me they may have a buyer for the Witham side of things.I think they could just pull through with the new management and the changes that are happening.This is only my opinion.

Resumption of Trading= 7 Jan 09 - well and good, now let's see what the Market thinks of the rather-thin RNS. . . . . . . . . . . . . . . .
OOps A director buys 100k-worth....at the all-time low of 3.5p (ie immediately following the RNS declaring "..much more work is needed..." (or similar). Now, call me old-fashioned, but it seems to me that this should constitute (the start of)a closed-period for no-one can know what the news will do to "suspended" shares - - - as it happens this is his first purchase and the sp has risen about 2x so it's nice to know that Execs can prosper from bad times, even thought all their investors haven't.....Grr.


. . . . . I don't hold this stock, having little faith in the original businness or its management, sadly this shenanigans reinforces that view.
DYOR.