----- Original Message -----
Sent: Saturday, March 30, 2002 5:02
PM
Subject: [sharechat] How to become a top
20 shareholder and gain the respect and admiration of your friends and
colleagues for only $2000.
The subject header could just as easily read "The
Unknown Company", or "Our Smallest Listed Retail Stock", or "Our Smallest
Listed Stock".
The stock in question is Retail-X (RTX), an NCM
production.
Retail stocks are currently flavour of the month
with WHS and BGR hitting new highs and a lot of interest generated by the PRG
and BEN situation.
RTX is definitely not in the league of any
of the above companies.It is truely a minnow.Current market capilisation
is approximately
$620,000.Based on their last annual report 10,000
shares would be enough to make you a top 20 shareholder (last sale price
.20c)
Their are two areas to the RTX business.One is
"RSL Management Services" which operates and owns various retail
management contracts for a number of well known shops such as Stirling
Sports, Toy World, and Linen Cupboard.These shops are mainly located in
Christchurch but are spreading to other parts of the country as the number of
Management contracts owned by RTX increases.
The other part of the RTX business is "E-Prepaid
Ltd.This is a prepaid internet purchase card, allowing people to make
purchases over the internet who would not neccessarily have access to a credit
card.This part of the business is of dubious value in my opinion.
If we use the auditors valuation report for the
"key transaction" and asign zero value to E-prepaid (the Auditors gave it a
minimum valuation of $325,000, but I'm trying to be realistically
conservative), and accept the auditors minimum valuation of $675,000 (this is
after having applied a 35% discount for lack of
marketability) we have a valuation for RTX of about .22 cents per
share.
On the face of it there wouldn't appear to be
much upside on their current share price of .20 cents, however my valuation is
extremely conservative. A lot will depend on the management skills of the
chairman and managing director Mr Mark Taylor.
Their latest half year report was relatively
positve with RSL trading profitably and 5 more store management contracts
having been added in the period in question.
The above should not be considered as a
recommendation as a to buy RTX shares.The company is extremely thinly traded
and has a limited history.
As for status seekers, you should bear in mind
that you have as much chance of picking up 10,000 shares in RTX at
.20cents
as the "Black Caps" have of winning the 3rd
test.
Discl. Shareholder in WHS,RTX.
Regards
Paul F.
See IRG research reports
