Forum Archive Index - March 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

As I hold CLH stock, I want to be careful with summing up the situation re RMG. In my opinion:

 

1. Their very late report seems to have a PR touch about it, it is what they don't say, that is important.

 

2. Their current liabilities are close to 2 times their current assets.

Unless they sell their petroleum assets soon, they may need more cash or increase the number of shares on issue.

 

3.The much higher margins are in the conversion of debt ledgers. These are bought in with cash up-front.

 

And it requires special skills and judgement: CLH and BCH have these skills, judgement and the cash.

 

Any outsourcing will particularly benefit CLH.

 

4. The number of RMG's already high number of shares rises steadily; some of these are in escrow and will come on the market at some stage.

 

5. They continue with taking over companies in these conditions. Is it according to plan or is it to prevent somebody else beating them to it?

My opinion is that their approach to business is not that coordinated.

 

6. It is important to have a single computer network operating before they continue with take-overs. I am not too impressed with their efforts in that field, sofar. 

 

Gerry