Forum Archive Index - May 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

Andrew - thanks for your passionate response to my post about the further dilution of current RMG shareholder's interests

 

What I had forgotten to say was that my acquaintance had already done very well out of Collection House in Australia and wanted to broaden her investment base in this sector. On the basis that superior performance and market leadership leads to superior returns she decided that Baycorp and Collection House would end up as market leaders. RMG would have a presence but would be picking up the low end and less valuable paart of the market.

 

You may have recalled my previous post about how it was interesting that the RMG good news machine had started to wind up. My suggestion was that RMG shareholders could play the game as well and sell at what I considered would be the best price you'll get for RMG for a while. Maybe this is happening in viiew of the recent market activity.

 

The RMG price will come under extreme pressure over the next few months with nearly 350 million shares coming out of escrow, 44 million options possibly being exercised and now the issue of about 45 million shares to pay for acquisitions.

 

Your disclosure that you hold RMGOA possibly gives away your motivation for being so bullish on the future of RMG.

 

Are these the options that have an exercise price of A$0.20  in a few weeks time? Are these the options that many punters brought at 18 cents or so not many months ago?

 

No doubt if the RMG price stays ay $0.20 (yesterday's close) the options will be taken up and punters taking their chance in the market to recover what they can from their punt.

 

Andrew  - is that what you are going to do or will hang on for the long ride?

 

Andrew - we now have two things to check up on in a years time. Firstly we need to check up on the statement you made a few weeks ago -  'The Co. would have to be run by complete idiots if was to lose most of this revenue inexpenses/costs'   Then yesterday's challenge means we need to check the relative share price performance of BCH v's RMG in 12 months.

 

An interesting and intriguing game going on in the market. 

 

Let's see what happens

 

Cheers

 

Peter