.

rising to 57p +3.50p after closing higher at HK

the Indicators were pointing to move this way since late last week, I selected the shares last Sunday for the - FANTASY PORTFOLIO - BIG GAINS FOR 2009 - at 53.375p

Nice to see this one still rising. I sold out my main holdings in the 70's and 60's on the big rise (after getting in on the low 30's it just had to be done locking in over 100% gains), and dumped the scrip awarded shares last week, so presently all out.

Lots of speculative buying ahead of any court case judgement, but of course if one is not forthcoming the hot money will depart again just as fast, so will watch with interest.

good contract win see RNS interims due next month.

Interim results link here :

http://www.hkexnews.hk/listedco/listconews/sehk/20090910/LTN20090910011.pdf

A number of negatives in there that people can take if you want to look past the headlines, which likely explains the "mute" reaction to the release on the Hang Seng this morning (RCG presently positive just 1% and getting weaker as time goes by, might finish down if this continues.)

Terrific results overall. 16p EPS in H1 alone!

http://www.investegate.co.uk/Article.aspx?id=200909100700058103Y

The outlook is very bullish, so an annualised EPS of say 32p+ EPS compares with a 75p share price, up nicely already today.

It's ridiculously cheap imho.

good results but no dividend again.

Some good comments by paulypilot, wshak etc.. on this web site :

http://boards.fool.co.uk/Message.asp?mid=11672623&sort=whole

..........

Author: paulypilot Number: 123720 of 123731
Subject: Re: RGC Interims Date: 10/9/09 17:46

Hi,

Have to say I agree with Zakmundo here. I've always been sceptical about RCG, but did buy a few a while back, just to be part of the action &it did look astonishingly cheap on a PER basis.

But the figures today just don't look right. Debtors are just way, way too high. Practically every time in the past when I've tried to justify an investment where the company has an inability to turn profits into cash, it's ended in disaster.

To my eyes, something looks very wrong with RCG, hence sold out this morning.
The other alarm bell was in the narrative, when they spend a paragraph discussing how beneficial to the share price the dual listing has been. For a start, management should never include commentary about the share price with results - the share price is for the market to decide, their job is to run the business. And I don't like dual listings for anything other than mega caps, as it duplicates costs.
But with the case of RCG, their comments on the share price clearly imply that they are happy with the current share price! But if you believe the numbers, the current share price is about one fifth of where it probably should be (if the company was generating cash).

Regards,
Paul.


Author: WShak Number: 123722 of 123731
Subject: Re: RGC Interims Date: 10/9/09 19:52

I completely agree with Paul on this one. RCG simply has too many of the wrong boxes ticked to merit serious consideration as an investment.

1. A leader with an extremely dubious reputation, if the Wang case is anything to go by.
2. Profits which don't translate into cash.
3. Incestuous investments in companies that are then responsible for buying licenses from RCG itself.
4. Strange obsession with the share price.
5. Large investment in Malaysia offices when the money could surely be spent more profitably elsewhere.
6. Very strange scrip dividend announced earlier in the year for no apparent reason.

RCG have had plenty of opportunities to throw off a bucketload of cash but they always seem to find a reason not to.

As Zakmundo says, it's either the cheapest stock on the market or there's something wrong.

I think there's something wrong. If there wasn't, somebody somewhere would be accumulating it in size.

WShak

.................

SHARECAST) - Surveillance software firm RCG Holdings shrugged off difficult trading conditions to produce strong growth in sales and earnings in the first half of 2009.

Revenues in the first six months of the year rose 31.4% to HK$1,293.7m (111.6m) from HK$984.4m (63.9m) a year earlier, with Greater China providing most of the growth.

China is the key driving force in economic growth, deputy chief executive officer Dato Lee Boon Han told Sharecast. The government has spent 4 trillion yuen on improving infrastructure and we are benefiting indirectly from that, Lee added.

The Hong Kong and London-listed firm said it is looking to focus more on Indonesia too, where the economy is developing nicely, while management sees lots of exciting opportunities in Nigeria, a market in which the company is a relatively new player.

Profit before tax improved to HK$380.5m (32.8m), up 18% on the HK$322.5m (21m) achieved in the first half of last year.

The group will continue to seek to grow both organically and by acquisitions. Quizzed on what sort of size acquisitions the company looked at, chief financial officer KC Chong told Sharecast that when contemplating acquisitions, it was more a case of finding companies that offered collaborative opportunities.

If a company has a licence for a product in a particular country where we want to expand, and the product fits our area of expertise, we will look at it, Chong explained.

The company does not pay interim dividends.

Security software specialist RCGs interim results were better than expected, prompting Evolution Securities to reiterate its buy recommendation on the shares without hesitation.

Evolution analyst Philippe Geronimi pinpoints China as the source of nearly all RGCs sales growth in the first half. Sales to Greater China amounted to HK$464.4m, up 153% yoy [year on year]. Southeast Asia, on the other hand, saw flat sales of HK$577.1m. Performance in the Middle East was encouraging with revenue of HK$247.3m, up 24% yoy, Evolution notes.

Down 4% which was to be expected. A bad October on the markets and with the Hang Seng getting bubbly, we could see RCG down in the 50's by November.

Any idea why sp jumped this morning, 80+p not what we expected

RCG were up 15% to HKD10.56 in Hong Kong overnight on heavy volumes of almost 5m shares - RCG are doing an investment roadshow over there which appears to be impressing institutional investors:

http://finance.yahoo.com/q?s=0802.hk

Given that after 16p EPS in their terrific interims RCG are on course for over 30p EPS this year the current P/E remains at only around 2.7 at 81p.

A re-rating to a P/E of only 5.4 would see a doubling of the share price to 162p.

and pigs might fly....

:o))

I bought at 30p when RCG was similarly undervalued, and now it's 81p. A doubling from here to 162p would put it on a P/E of 5.4 based on 30p EPS this year.

It won't take much to move it if as seems to be happening the Asian institutional investors become interested..

Surging now, up to 93p - led by Hong Kong, with 2m shares traded and having broken through the HKD12 level.

At 93p RCG are still on a P/E of only 3.1 based on 30p EPS this year, having achieved 16p EPS in H1 alone.

And much of the m/cap is covered anyway bu substantial tangible net assets.

A doubling from here would see a p/E of just 6.2 - and a 186p share price.

Shares weak in Hong Kong today, might be this story and the fear that Tony Chan might start selling RCG and dumping lots of liquidity into the market with might create a mega overhang.......


http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=88206&sid=25454818&con_type=1

Wednesday, September 23, 2009

Fung shui master Tony Chan Chun- chuen continues to sell assets amid his legal battle with the Chinachem Charitable Foundation for the estate of late billionaire Nina Wang Kung Yu-sum.

Chan has been offloading personal assets since the financial tsunami hit late last year. He is reportedly strapped for cash after making investment losses.

The latest move is a possible disposal of his entire 62.32 percent stake in UURG Corp (8192). In previous months Chan sold properties worth more than HK$400 million.

UURG - an information technology and engineering consultancy services provider - said yesterday that Chan was considering selling all his shares. Such action may result in control of the company changing hands.

The firm's shares, which resumed trading yesterday afternoon, rocketed as much as 53.8 percent before closing at 24.1 HK cents, up 23.59 percent on turnover of HK$12.48 million compared with HK$5 million last Friday before trading was suspended.

UURG - which is listed on the Growth Enterprise Market - said Chan entered into an agreement with a potential buyer to facilitate due diligence up to October 1 and that Chan had received a non-refundable deposit of HK$500,000.

Chan's wholly-owned Marilyn Investments and Offshore Group Holdings hold his UURG shares. Marilyn, through its wholly owned subsidiary Almond Global, holds 2.52 billion shares, or 45.26 percent of UURG. Offshore holds 950 million shares, or 17.06 percent.

Almond also holds a convertible bond in the principal amount of HK$2.9 million which can be converted into 5.8 billion shares.

In July, Chan sold a luxury home at Severn 8 on The Peak for HK$230 million, or HK$45,000 per square foot, after buying it for HK$167 million in 2006.

He also reaped a total of HK$178.5 million by selling a house at Royal Oaks in Sheung Shui and a house at Middle Gap Road on The Peak.

In January, he received HK$203 million for a top-of-the-line Gulfstream jet that he bought for HK$265 million in 2005. He is also said to have sold two yachts.

ell if the recent rise has been in expectation of a court room settlement of the will, its not going to happen for a lot more months to come. Later this year or early next is the guidance from the judge on when the verdict will be given.


http://www.examiner.com/examiner/x-11031-Orlando-Feng-Shui-Examiner~y2009m9d23-Who-will-inherit-Nina-Wangs-estate-Chinachem-Charitable-Foundation-Ltd-or-Feng-Shui-adviser

Who will inherit Nina Wang’s estate: Chinachem Charitable Foundation Ltd. or Feng Shui adviser?

September 23, 3:55


Nina Wang (AP photo)40 days of courtroom battles are over having left the question of who will get the multibillion-dollar estate without an answer.

Nina Wang, the richest woman of Asia and the 204th richest person in the world, according to Forbes, died in April 2007. After her death, two wills were................................

Placing to raise cash, at a discount to the present SP.

Has to be proof to the disbelievers that the company is in cash flow problems. Who wants to raise money at such a low PER............bad dilution.

Could be more bad news to come in the next financial results release perhaps ??

News out this morning in Hong Kong media regarding the Nina Wang holding. Tony Chan (Raymond Chu's friend) has lost the case and Chinachem have won.

This moves all those RCG shares out of the "friends of RCG" hands and into Chinachem hands, which may mean they will now sell the complete holding of free shares they have inherited and get the cash.

RCG down in Hang Seng trading on the news.

Could see a sell off on London too.