Forum Archive Index - August 2001

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

 

Peter,

 

You have been digging deep all right and have come up with answers, investors want to know. Come to think of it, you have supplied data, nobody else in Aus. or NZ has done sofar!

 

I agree with you when you refer to the money raised by the option conversion: Where was it spent on?

 

RMG also got a tax credit but sooner or later, the taxman will want his share!

 

I remember the reference to the Auditor at the last Annual announcement. Hopefully, RMG has got their financial details sorted out by now!

 

Someone referred to RMG and compared their status with that of BCH, some years ago.

 

I have been a shareholder of BCH for some years now and am well aware of the present status of the market place.

 

I can tell you that it has changed since! And I have illustrated that in prior articles. Refer to those of June 23, 24 and 26, 2001.

 

These posts go back to 18 Nov. 2000.

 

The position is that RMG needs cash to buy debt ledgers. That is where the margins are! If there is little cash then these won't be bought! 

 

Incidentally, in my opinion, companies will outsource ledgers to BCH and CLH because they have a solid commercial record and are known. They are way ahead in the market place!  

 

Others still have to earn such a record.    

 

Till  then, one has to work in the ' commodity ' business where margins are small, till there is cash available. That can take some time! The whole situation can become a vicious circle.

 

In my opinion, some members of the RMG Board may well want to speed up this process by placing some shares, if they can! They already have some 587 mill. shares!

 

As I see it, RMG needs cash. I don't expect it to buy ledgers and pay dividends as well!! In any case, they will still have to jump the tax hurdle at some stage! 

 

I can see the share price of RMG supported by those who are able to support it.

 

As to the prices of BCH and RMG: A kilo of gold is worth more than a kilo of lead!

 

Will the Alchemist change lead into gold? That is the question!

 

Gerry

Holds BCH and CLH and would like to buy RMG if, and when, it is worth buying.