Member Info for Proselenes

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.

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.

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

January 2009 Corporate Newsletter is out, link below, and it makes good reading. http://www.rcg.tv/html/eng/about/newsletter/2009jan.jsp ----------------- 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 yours

Going to be very interesting what the weak pound can do for Surface Transforms. After having to warn some time ago about falling sterling values on their US dollar based sales (when it was 2 dollars to 1 pound), the rapidly falling pound must now be making their dollar based sales very much more profitable in sterling terms, especially as its done through distributers, so no US dollar based overheads. What is of course more interesting is how sales pick up, given the pound is now so low that SCE's products are so much cheaper for anyone outside the UK. What was slowing opportunies due to 2 dollar exchange rate, should now be rapidly increasing opportunites. On top of this the most obvious competitors are Euro based ones, and so, the pound collapsing just makes SCE more attractive again. Will any effects of the global slow down be more than compensated by the dollar based sales and increasing opportunities ?

Nice article over on TMF. http://www.fool.co.uk/news/investing/2009/01/19/bag-an-aim-bear-bargain.aspx

Gledhill still buying and building their stake in SCE. Gledhill of course leads to http://www.usggledco.co.uk/ They must see the potential, and must be happy to pick up stock at these levels, makes any future bid for the whole company, and therefore the IP, much cheaper to them the more they get down at these levels.

Comment from Chartist "Zak Mir" over at SC. <i>Zak Mir Reged: 28/06/07 Posts: 559 Re: RC Group (RCG) [Re: Proselenes] #437178 - 09/01/09 09:12 AM Technically, we need to see a weekly close above 2 month resistance at 39p - something which now does not look to be too difficult. The target would then be the 200 day moving average at 57p. </i>

Write up of RCG over on TMF : http://boards.fool.co.uk/Message.asp?mid=11382830 .

I put a comment on this thread over at TMF, you will see it as you move down through the replies. http://boards.fool.co.uk/Message.asp?mid=11380292&sort=whole .

Yes, short term view this is now a BUY IMO. DYOR

Just posted this on SC : "On a business level they are doing what they said they would. As it stands now the crashing pound will help them, as most sales on car brakes are export. The rising Euro will also disadvantage the competition, so in 2009 there could be some good car braking upside in spite of the credit crisis. With rockets, which is what todays news was about, it was envisaged that 2009 would see the first "real" volume sales and so contribution to profits, and this really coming on stream in 2010. So today we have talk of potential "production versions".......so all is potentially on track for a little 2009 contribution from the rocket side as planned. All in all, doing well, and lets hope they continue to do so. Also note the other Engineering company keeps buying shares (last holdings notices) - someone is keeping an eye on events, potential here is enormous, if the plans go "as planned" "

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