.

As of Tuesday we now have the HK listing and the shares have mushroomed. However the HK pice is at present 23HK$, which equates to 2, whilst AIM is quoted as 78p. What is going on and when will we get some parity? It must stabilise this week surely? Problem is the share has been far too lowly rated on AIM and HK investors obviously love it. But should one buy more shres on AIM?

Seems to have fallen to HK$16 after profit taking?

Nothing goes up in a straight line, always will be profit taking and pull backs.

Thats why the results statement is the next big key driver for RCG.

For those who want to see standard Hang Seng P/E's, and remember this is the average, not the extremes, and RCG fall into being "profitble, cash in the bank, growing" and so should be well ahead of the "average".

http://main.hsi.com.hk/hsicom/table/MnPEHSI.html

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http://www.investegate.co.uk/Article.aspx?id=200902130700082466N

One of the directors taking up a buy of options, 400,000 of them at 136p each.

Thats a lot of money, and he could have purchased them cheaper on the London market, so one could speculate he must be confident of the future of the company..........

I reckon parity in the share price will be reached next week, otherwise most AIM shareholders will switch their listing to Hong Kong, which takes six days. Perhaps many institutional holders have already done so. AIM share price rising as I speak.

jab1tt

But if they switch and sell them over there, then the HK price will drop to fall more in line with the AIM I'D thought rather than the other way round.

That's possible but my point is that there will have to be parity shortly. I should think that such a disparity in the share price is virtually unknown and it does appear that the company will get a much higher rating in HK, bolstered by good results. If the higher rating in HK persists, AIM will have to come into line.

jab1tt

Well, for those who do not beleive the IT sector, of which high tech RCG belongs really, cannot trade at 30 times and 40 times earnings, here is the chart of IT PER ratios on the Hang Seng.

Patience and wait.......might be a year or two, but just think about the gains as Hang Seng takes over and drives the price up as more and more stock is transferred over there (taking it the company continue to do fine of course)

http://main.hsi.com.hk/hsicom/table/mnpehsciit.html

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pp do we have a date for final results announcement, in previous years it has been either end of feb or around mid march?

Thinks its going to be mid-March.

Allow time for HK institurions and brokers to extract stock from AIM, transfer over to Hong Kong......and then be ready to feed lots of new buyers on excellent results.

This will help even up the 2 exchanges, as less stock will be on AIM.

pp tks, do you know what the free float is ignoring Madam Wang's estate shareholding?

Presently I would guesstimate its around 40%, and most of that on AIM.

What we need, and what hopefully happened last week, is Hong Kong brokers and institutions started buying on AIM, and will be, in the coming weeks, transferring it over to the Hang Seng.

The price differential makes it good business for them, and with results mid-March, there should be plenty of buying demand to sell it into.

From the South China Morning Post - looks like RCG is getting some media attention both here and in Hong Kong/China.

Very interesting to get the news from the other side of the globe Proselenes - thanks!

Some industry news on the RCG site :


http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_11.jsp

Over 60 countries issuing e-passport

15 February 2009, 23:00:00

By the end of 2008, over 60 countries have been issuing e-passport. The issuing of new e-passports was the initiative to replace existing travel documents in order to store additional information such as digital photographs and biometrics. The first country that issued e-passport was Malaysia in 1998, with other countries following in 2004. The last country to issue e-passport was Taiwan on 30 December 2008. Looking into 2009, a number of countries had already announced their initiative of issuing new e-passports, including: Canada, Croatia, India, The Philippines, Israel, Botswana and South Africa. New projects involve replacement of traditional passports, upgrade of existing e-passports to include biometric information and performance optimization. It is expected that more countries will adopt e-passports containing biometrics in the near future for improved border security. Source: findbiometrics; 2009 ePassport status: 60+ countries now issuing (30th December, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/biometrics/2009_details_10.jsp

Airport in 2016 is a combination of Mobile Communications and biometrics

15 February 2009, 23:00:00

Gadling, a website specializing in travel-related news has featured an article on the prediction of future airports. The author believed that biometrics and Near Field Communications (NFC) will be the dominant technologies, whereas biometrics is for airport and border security, NFC is for boarding passes embedded to mobile phones. Fingerprints and Iris recognition technologies are expected to dominate in airports for more convenient measures for border security. The author predicted that mobile phone boarding passes will undergo trials in 2009, whereas the fundamental infrastructure will be ready by 2011. The nationwide biometrics database may be realized at a later date, but larger projects in biometrics may be readily initiated by the private sector for more convenient authentication for checkpoints. Source: gadling; The future at the airport involves your phone, fingers and eyes (December 26th, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_11.jsp

RFID for monitoring glass bottles manufacturing

15 February 2009, 23:00:00

There has been an initiative in Britain to encourage manufacturers to lighten the load of the glass bottles used for food and beverages. The Waste andamp; Resources Action Programme caused problems to the manufacturers as glass bottles may break as a result of less glass used. RFID technology was adopted to solve the problem and the solution was introduced and provided to manufacturers which intend to follow the initiative. An RFID chip with sensors was placed in a glass bottle throughout the manufacturing process. As the bottle passed through various checkpoints, staff with the hand-held interrogators extract information from the RFID chip and the data was sent back to a centralized database for further analysis. The pressure, impacts and temperature experienced by the tagged bottle were monitored. Weak points were easily identified and the process can be further optimized to achieve a balance between breakages and efficiency. Source: rfidjournal; Smart Bottles Reduce Glass Breakage (Dec 29th, 2008)


http://www.rcg.tv/html/eng/about/newsroom/industry_news/rfid_news/2009_details_12.jsp

Jewellery retailer adopting RFID for security

15 February 2009, 23:00:00

A Jewellery retailer in India has recently completed a trial for the use of RFID to enhance security and improve inventory management for their products. Passive RFID tags were used for less expensive products and active RFID tags were used for luxurious items. RFID readers were installed within the store located in New Delhi for regular monitoring of store inventories. As part of the infrastructure, readers were installed in both the ceiling and under the floor at the exit. It will alert the store owner if the tags were removed, disabled or positioned out of range via email or text message. 100 percent security was said to be achieved by using RFID in the store, error rate was also minimized as a result of better visualization of inventory status. After the success of the trial, the company expects to adopt RFID for tracking in all of its stores located in other parts of India. Source: rfidjournal; Indian Jeweler Seeks 100 Percent Security From RFID (Dec 30th, 2008)

Posted by Tom Winnifrith at SC that Lucian Miers went short on RCG at 80p. He is happy to hold the short position as he feels the buzz will die down and many will sell asthe price stabilises and does not immeadiatly catch up with Hong Kong.

Well, I am happy to hold, knowing that results are coming in mid-March, and around 20p earnings are on the cards, along with a raised dividend and the potential that the share buyback will restart, and they will be buying shares from AIM, knowing later than issue on Hang Seng doing a......buy low, sell high.

Also, if Lucian and many others are short......I think they are also not stupid, and if the price fails to fall back much, they will be rushing to buy back before mid March gets near, in fear of results.

Enjoy.

pp interesting LM is short AND EK is long!

A few people have been asking how you trade stock in Hong Kong. Well, its quite simple, you open a trading account and fund it and trade shares. Obviously once your set up it makes any transfer process easier if you did want to send stock from AIM to Hong Kong.

I used to have accounts with HSBC and Hang Seng bank in HK, but have long since closed them down as most people did before 97 as the good times ended.

If you want to open an account in Hong Kong, you can, their banking system is quite open, only used to need a passport copy and away you go.

You can try looking at : http://www.hangseng.com/hsb/eng/home/hse.html

This will allow you to set up a Hang Seng Bank account, and likely all the "e-banking" and "e-trading" you want to.

Once you are set up, then you have a contact for which to send your AIM shares to, once you go through the proper process.

Have not done it myself, simply I am lazy and cannot be bothered, but I am sure it easy to do, opening accounts in Honkers was also easy, as was Singapore......it had to be easy, there is a lot of cash that finds its way into the Honkie and LaLa land bank accounts from rich Asians wishing to not have money in an account in their home country...........nudge nudge wink wink...... :)

I put this post on TMF :

http://boards.fool.co.uk/Message.asp?mid=11447249&sort=whole


I see in Hong Kong the price is up 20% today and trading around 129p levels. One key indicator for me amid all the talk is the simple fact a senior manager excercised options (400K of them) at 136p last week.

Insiders are nearly always the best indicator of the future, and if this bloke was happy to invest over half a million pounds (straight into the bank account of RCG) for options at 136p last week on the Hang Seng, then I am happy too.

As in my TMF post, shorters imv have been in control due to the spike and the market turmoil of the recent days, but they have to buy back at some point :) and then watch them chase the price upwards to close.