Forum Archive Index - June 2001

["AXL" <gregsmcd@hotmail.com>]

I have followed RCH closely for the last few years now and now currently hold stock in this Co.

The have previously shown signs of a strong rebound that came to nothing.

This time many aspects look to have come together for this diversified Co.

1, They are currently trading at a substantial discount to NTA.

2, PE ratio is very healthy.

3, Their biggest interest-MAINZEAL will surely pickup more business as their smaller competitors have had recent troulbles and complete collapses.This 'shaking out' of the building industry will leave the larger operators in a stronger position.Mainzeal seem to have a large-healthy share of the medium-large construction jobs in the Auckland market.Margins have been thin but the above mentioned should help this situation as what would appear to be the cut price operators are "not cutting it" or trusted by some developers.

4, Their Chinese operations now seem to be kicking in profits and future growth of these offshore will likely become substantial.

5, RCH are currently selling down certain investments(at profit) .This will further strengthen their cash position.

6, The next profit announcement will be the telling time-I expect to see strong earnings growth continue.....

 

Any negative downside?????

(I am sure someones bound to find some)

REGARDS ALL