Updates

RCG Holdings - Eps forecast of 17.3

September 2008

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.

RCG, which develops biometric fingerprint and facial recognition applications, has announced very strong results for H1 to 30 June leaving the shares looking dirt cheap. Sales went up 65% to Â£63.9m - most of which was organic growth. Pretax profit was up 72% to Â£21.5m for eps of 9.3p (assuming Â£/$HK of 15 which is going RCG's way). The worry with RCG has always been the very poor historic cash flow and RCG heightened these worries last year when it cancelled its tiny dividend but these results demonstrate a significant improvement in cashflow (matching profits by 70% compared to only 39% last year). At the end of last year, RCG changed the basis on which it reports into three segments; consumer, enterprise and solutions. ...

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James Fisher

Eaga

RCG Holdings (January 2011)

RCG Holdings (May 2010)

RCG Holdings (February 2010)

RCG Holdings - Prospective PE barely 3 despite share price rise (November 2009)

RCG Holdings (April 2009)

RCG Holdings (February 2009)

RCG Holdings (June 2008)

RCG Holdings - Multiple contract wins (April 2008)

RCG Holdings (March 2008)

RCG Holdings - Middle East boom underpins growth plans (February 2008)

RCG Holdings (January 2008)

RCG Holdings - H1 significantly ahead of expectations (August 2007)

RC Group - Record results (April 2007)

RC Group - Results to exceed forecast (March 2007)

RC Group - Gain since August tip: 139% (February 2007)

RC Group (November 2006)

RC Group - Forecasts upgraded (October 2006)

RC Group - Mainland China distribution deal (September 2006)

RC Group - Boimetric / RFID specialist (August 2006)

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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