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 - is it all hot air or is their real substance to this business

RC Group, a provider of integrated biometrics and RFID security solutions (products the potential for which I have difficulty understanding) came out with a trading update this week. Although this was claimed to cover the Group's ‘financial performance’ in the first half of the 2007 financial year, no actual numbers appear to have been given which strikes me as somewhat strange.

It reported that it has experienced a strong start to this financial year, but what does ‘strong’ actually mean? Apparently this is attributable to the successful launch of several of the Group's products into the Chinese consumer market, and the launch of BioMirage (what on earth is this) into the South East Asian and Chinese consumer markets.

It has also successfully entered into ‘potentially lucrative’ joint venture and partnership agreements in the Peoples Republic of China ('PRC') and South East Asia to drive future growth. So, lots of potential but again no numbers!

There appears to be immense potential for this business but also what looks to me like an immense amount of hot air as well. The volume of regulatory news flow reminds me a little of Stanelco.

I understand that biometric products are really big in South East Asia but as I look out over the English countryside I'm sure you can imagine that it’s hard to relate to the potential of biometrics and RFID security solutions. All I do know is that if there is potential it’s bound to be a crowded market!


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