RCG Share Discussion Threads

[boadicea] 26/3/2012 19:17

Just looked back and see the chart is gradually assuming an unaccustomed shape.
Could the bowl hold water after all?

[robertfaulkner] 21/3/2012 20:15

No post for over a month and now share price is up a bit to Buy 7.77p Sell 7.73p with such a small spread (it used to be Buy 8p sell 4p)

Could it survive?

[pentangle] 15/2/2012 08:10

I think its a case of could the last one to leave turn out the lights!

The management here has long lost all credibility and it is a racing certainty that these shares will be worth zero in the, probably, near future - in fact its a mystery how they have lingered on so long or indeed how the directors remain untroubled by any regulatory body (or the police).

However, RCG retains the ability to fascinate and even the vast majority who sold out (hopefully) a long long time ago often retain it on their watch lists.

I suppose it also has interest as a short term trading stock, but only if you have the stomach for it. Its not my game though.

[robertfaulkner] 15/2/2012 07:48

Below is the last bit of trading statement 16th Jan.

Any one want to bet the audited figures will not be signed off "around the end of March" unless they can find a student to falsify them



"Although the Group has been able to execute smaller-scale projects secured with various governmental bodies and major corporations in the Southeast Asia, China and the Middle East, some delays in the bigger projects together with the decreased revenues and margins described above and research, development and investment expenditure, has put further pressure on the Group's working capital position. As at 31 December 2011, the Group had cash of approximately HK$24 million and bank borrowings of approximately HK$83 million. As set out in the Company's recent circular to shareholders, the Board intended to seek funding through further issues of equity. However, in light of the fact that the General Mandate Refreshment Resolution was not approved at the recent shareholder meeting, the Board is currently considering various funding alternatives to finance its development plans and reduce its borrowings.



The information contained in this announcement is based on a preliminary assessment by the Board of the financial information currently available, which has not yet been confirmed or reviewed by the Company's auditors or the audit committee of the Company. The Company expects to announce its audited results for the year ended 31 December 2011 around the end of March 2012."

[robertfaulkner] 15/2/2012 07:38

Any one got any thoughts on RCG, a few weeks without a post?

[dibbs] 19/1/2012 21:55

If nothing else RCG has become a stock from which many of us have hopefully learned a lot. Hard to believe that at one time RCG held so much promise and many of us thought we would derive significant returns from our investment! The low valuation afforded to RCG by the market turned out to be correct all along. What a relief to have left the building with my capital intact.

It's hard to see that they have anywhere to go from here other than a vague chance to destroy what little shareholder value remains. It's all the funnier when you read the "about RCG" section on their RNS's, who are they trying to kid?! Delusion appears the only thing they still have in abundance!

"RCG, a leading global provider of integrated biometrics and RFID security solutions, is publicly quoted and its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited and admitted to trading on the AIM Market of the London Stock Exchange and the PLUS market. The Company has a growth strategy focusing on long-term projects, solutions and services and development of new applications and revenue streams, particularly in the security applications industry."

My sympathies to anyone who has remained invested in this slow motion HD wreck.

Dibbs

[robertfaulkner] 17/1/2012 14:09

Definitely the CEO will be laying prostrate on the pavement with his hand out holding a paper cup on Queen's Road, Hong Kong.

I've seen many a successful beggar in HK doing this quiet well

[typo56] 17/1/2012 10:07

Any idea how they propose to obtain funding now?

[robertfaulkner] 17/1/2012 09:59

down another 13% today which is only 0.7p but every little bit helps.

Should I put a limit buy in for a grand at 3p, maybe it will have one more spike up but probably just throwing my money away.

[typo56] 17/1/2012 09:35

I feel another nil value for ordinary shareholders on the horizon.

[robertfaulkner] 16/1/2012 15:34

IG Index has RCG losing one third of their share value today, it was worse earlier.

Perhaps the big rise is coming now the dealers have shaken the tree to get some shares to deal in. Hee Hee Hee

IG have Buy = 4.986p Sell = 5.514p

[robertfaulkner] 16/1/2012 15:30

Anyone bothered to ring the nominated adviser and broker and see if he
1) has ever heard of RCG
2) if he has, has he any accounting qualifications or are they perhaps painters and decorators
020 71314000



Enquiries:
RCG Holdings Limited
Danny Chew, Acting Chief Executive Officer
Tel: [phone]
[e-mail]

Smith & Williamson Corporate Finance Limited
(Nominated adviser and broker)
Dr. Azhic Basirov / David Jones
Tel: [phone]

About RCG
RCG, a leading global provider of integrated biometrics and RFID security solutions, is publicly quoted and its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited and admitted to trading on the AIM Market of the London Stock Exchange and the PLUS market. The Company has a growth strategy focusing on long-term projects, solutions and services and development of new applications and revenue streams, particularly in the security applications industry.

[arthurly] 16/1/2012 14:14

What a horrorshow. so glad I got out at 65-70p.

[boros10] 16/1/2012 13:53

I reckon they will all get away with it. No twenty year stretches just stretching out on the deck chair enjoying all the money defrauded from shareholders.

RCG shareholders are not alone in being ripped off. Take a look at Carson Blocks website. He has done great work in exposing US listed Chinese frauds. Reading his latest expose about Focus Media Holdings reminds me how the same techniques are used again and again. Dodgy acquisitions of shell companies, massive goodwill write-offs, buying "sales" using cash channelled out of the business and the eventual disposal of these dirty acquisitions for nominal consideration putting the records beyond the auditors.



What I find most annoying is how "reputable" advisers in the UK and US have been willing to "help" these companies achieve this illegal transfer of wealth. Not actively helping of course, but simply turning a blind eye. These Sell Side lackies need to be better regulated and take more responsbility.

Auditors and Nomads should be legally required to issue a statement explaining the reasons should they resign or be fired. They should have a duty of care to investors if they fail to report evidence of fraud. Replacement Nomads and Advisers should be required to undertake "shareholder fraud" focussed due diligence before accepting any appointment including the extensive questioning of previous advisers.

Fortunately, I managed to side step the RCG disaster selling at a small profit once I became suspicious of managements actions. The biggest clue was the failure of the Company to match operating profit to operating cashflow over a five year period (only around 10% of profit converted into cash) and the rising level of trade debtors. This prompted me to investigate the Best Chance, Vast Base and A1 deals. Appalled by what I found I sold out and then shorted the stock down from the 60s to the low 20s.

I really admire what Carson Block has done in the US on a much bigger scale. His actions have been a catalyst for the market to revalue these businesses. I am sure some good companies have got caught in the crossfire but the ultimate blame must lie with the fraudsters who have done untold damage to the credibility of Chinese companies.

[stegrego] 16/1/2012 13:06

I'm still struggling to understand why Chu et al arent doing a 20 stretch in jail.
Blatant fraud and yet both LSE and HK do nothing about it.

[glasshalfull] 16/1/2012 12:16

As stegrego says above....the endgame is in sight.

Absolutely dreadful trading statement released a few minutes ago....bigger losses, no cash, lower margins, intense competition, run out of cash, increased impairment provisions over trade receivables....goodbye RCG !!!




The Group continues to experience margin pressure in both the Consumer and Enterprise business segments with lower selling prices arising from increased competition, coupled with rising cost of sales. These trends, together with the substantial disposal of surplus inventory by the Group in the second half of the year at discounted prices, have resulted in substantially lower gross margins than have been achieved in the past.

The Board has decided to make very substantial further impairment provisions against the carrying value of trade receivables, in addition to the impairment provisions made at the half year stage; this, combined with the lower revenues and margins referred to above, has contributed to a significant net loss for the full year ended 31 December 2011 which is estimated to be materially larger than the net loss reported for the first half of 2011.

Although the Group has been able to execute smaller-scale projects secured with various governmental bodies and major corporations in the Southeast Asia, China and the Middle East, some delays in the bigger projects together with the decreased revenues and margins described above and research, development and investment expenditure, has put further pressure on the Group's working capital position. As at 31 December 2011, the Group had cash of approximately HK$24 million and bank borrowings of approximately HK$83 million. As set out in the Company's recent circular to shareholders, the Board intended to seek funding through further issues of equity. However, in light of the fact that the General Mandate Refreshment Resolution was not approved at the recent shareholder meeting, the Board is currently considering various funding alternatives to finance its development plans and reduce its borrowings.


---

Best of luck to anyone still connected with this sorry mess.


Regards,
GHF

[lyonst5] 16/1/2012 09:29

Robert, best stop the bleating and just take a short position. I currently have a small long position from 5p.

[robertfaulkner] 16/1/2012 09:25

HKX:802, RCG's Hong Kong listing, down 6.3% today (-6 HK cents) to 89 HK cents

They don't like the EGM result

[robertfaulkner] 16/1/2012 08:59

AMAZING THE BOARD OF RCG(2MEN AND A DOG) COULD NOT GET THE RESOLUTION TO ISSUE MORE SHARES (DILUTION) SO TURKEYS DON'T VOTE FOR CHRISTMAS.

AND THE BOARD DIDN'T JUST SAY IT WAS CARRIED AND LINE THEIR POCKETS WITH THE PROCEEDS OF A SHARE ISSUE.

THEY WILL LOOK TO "ALTERNATIVE FUNDING ARANGEMENTS" THE CEO WILL BE IN HK WITH A PAPER CUP BEGGING FOR COINS

BELOW FROM RCG WEB SITE (STILL BUILDING TRUST)




Result of Special General Meeting Held on 14 January 2012
16 Jan 2012

Reference is made to the Circular and Notice of Special General Meeting despatched to Shareholders on 23 December 2011 regarding the proposed General Mandate Refreshment. Terms used in this announcement have the same meanings as defined in the Circular unless otherwise stated.

The board of directors of RCG Holdings Limited (AIM: RCG, HKSE: 802) (the "Board"), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific and Middle East markets, announces that at the Special General Meeting of the Company duly held at 3:00 p.m. on 14 January 2012 (Hong Kong time) at Lot 1, Jalan Teknologi 3/5, Taman Sains Selangor 1, Kota Damansara, Petaling Jaya, Selangor, Malaysia, the General Mandate Refreshment Resolution was not passed. Consequently, the Board will seek alternative funding arrangements to finance the Company's expansion plans and repay existing loans. A further announcement concerning the Group's financial position and trading for the year ended 31 December 2011 will be made shortly.


- Ends -

[stegrego] 16/1/2012 07:05

Got to be the end approaching now for this incredible tale.

[robertfaulkner] 13/1/2012 08:28

One day until the EGM in the plot(car park?), I wonder if they will announce the results on their web site straight away?

[robertfaulkner] 12/1/2012 10:08

Will RCG be doing a live Webcast of the EGM on Sat 14th, maybe it's difficult to get the laptop web cam to work in the car park where they are holding the EGM?????????????

[robertfaulkner] 09/1/2012 17:55

I just looked at the HKX:802 (HK RCG) they had a vol of 10.5 million shares today. To compare, the bank HSBC HKX:05 (HSBC shares in HK$) was only a few million more at vol 13 million shares traded today.

So a massive change of ownership of the HK RCG shares??????

Of course 10.5 mill HK shares were sold at a massive loss today or are market makers selling them for 90HK cents each knowing they can buy them in a week or so for 50HK cents

[robertfaulkner] 09/1/2012 17:42

When I look at RCG trades on UK market, it was only 21 deals all day, one was for 2000 shares = £140 to 25000 shares = £1750

Maybe the HK market has a much bigger volume?