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RCG Holdings

May 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RCG
  • Price:
  • 66.2p
With exposure to an exciting new market in biometrics and RFIDs, most of the business being in Southeast Asia, China and the Middle East, no debt on its books and high margins of 26% - what more do investors want from RCG? At first sight it is hard to see why RCG shares are still languishing on a single digit PE. But full-year results were a little light on expectations, especially after the bumper interim results. RCG only managed to grow its pretax profit by 11% to HK$789m (£65m) on sales up 22% to HK$2.45 billion (£202m). Normalised eps were HK$2.33 or 19.2p.  RCG's business is focused on the development and sale of biometric and RFID equipment in the areas of security access, surveillance, anti-counterfeiting, ti ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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