I see RCG Holdings is de-listing from AIM and I can breathe a sigh of relief that my investment in this company was a short and fortunately profitable one.
RCG was a seductive company to invest in: profitable, decent balance sheet, low single digit p/e ratio and growing rapidly in a ‘sexy’ area. However, I resisted her obvious charms for a considerable time.
I don’t know whether it’s irrational but I do dislike very busy bulletin boards (maybe something to do with giving the herd a wide berth?) and RCG’s board was very busy. Neither was I very keen on their surprise fund raisings and I was certainly put off by an almost farcical court case involving a major shareholder. However, eventually I did succumb, despite these misgivings, when the share price was about 40p and a Hong Kong listing appeared very likely.
The Hong Kong listing duly arrived, and at one stage I’d more than doubled my money. Unfortunately I didn’t take profits, the share price began to drift downwards and nagging doubts came back to haunt me.
I can’t remember what the wording of the RNS was exactly, but I do remember it involved at least one Director and a search of their property, but no arrests. I decided to take my now 50%+ profit. Quite satisfying after a few short months, but I consider myself very lucky with this one.
I didn’t follow RCG after this point, but did from time to time glance at the ever diminishing share price.
Yesterday the company announced that it was de-listing from AIM and the shares plunged further. By the end of today they languish at 17.25p.
Au revoir RCG I just hope that you haven’t broken too many hearts along the way.
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