Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

RC Group – should a stock like this really be on AIM?

In response to a dramatic fall in its share price I see that RC Group, a company whose valuation we have questioned previously, put out an announcement today.

The fall in share price appears to have been caused by the death of Nina Wang (often quoted in the media as being ‘the wealthiest woman in Asia') who indirectly owned 27.6% of RCG.

Mr. Tony Chan has filed legal papers staking his claim to the estate of the late Ms Nina Wang. The Chan family is one of the existing major shareholders in RCG and also holds 26.7% of voting rights in the company. Mr. Tony Chan's brother, Mr. Bobby Chan, is one of the founders of RCG. Dr. Raymond Chu, Chairman and CEO of RCG, has been an acquaintance of both Mr. Tony Chan and Mr. Bobby Chan for many years.

It all sounds a bit of a Hong Kong family affair to me which begs the question why on earth is it quoted on London’s AIM!

RCG has reaffirmed that business is progressing as usual and is confident that the Group's performance is on the course to meet market expectations.

With c2m shares being traded today many appear to have been spooked by the news.


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