Forum Archive Index - May 2000

["Brian Gale" <brigale@i4free.co.nz>]

 

Someone mentioned RCH recently (sorry I have lost track of who) as a likely prospect owing to its low price - 40c.

I have been a shareholder since the Mair & Co days and missed getting out when the price was  around $1.20 !!

 However, having just received their v.comprehensive report I believe this could be a good punt at the current low price. They do have NTA = $1.14.

Future progress will revolve around the China finished leather operations which must have great potential for the future. It is interesting to learn that the factories occupy an area equivalent to the size of two football pitches.

Little can be expected from the NZ operations inc. Mainzeal.  Although Mainzeal have good sales and a record forward order book their profitability is v.low due to the highly competitive building industry.

I believe the key to this enterprise is the fact that in the last 2 years they have been setting up their Chinese operations, at considerable cost, and this investment is starting to show returns - revenue in '99 increased 43% to $63 mill. with a  1M  loss before unallocated expenses down from 11.6M in '98

There could be a return to overall profitability in the current year which will surely return them to favour with a corresponding lift in the share price which looks as though it has bottomed.

 

Brian Gale