the train is leaving the station, page-9

gentleman

It is interesting reading your thoughts. One thing you have to take into consideration is that we have come through a very hard Real Estate market. According to the news this morning they are predicting upside in property prices. If the market takes off, with RNC building a sales department that will add to the rental managements. From what I hear around the traps RNC are looking to take on more large developments which will feed the property managements in through their sales departments. The problem with WWM it had so much stock on issue you could use it for toilet paper and nobody would notice it missing. By memory WWM was a company folded into a company into a company which eventually got brought out by Charles Tarbey.

There is so much opportunity in the market place for RNC to acquire rent rolls they just have to get back into the acquisition phase.

It is very simple case of maths - a rent roll returning $500k is worth roughly 3times = $1.5million. To finance it it will cost $120k based on 8% interest rate. With the infrastructure already in place the cost of managing the properties will not increase that much so you could find a possible 40 - 50% of the income could go straight to the bottom line. Not to mention the other income generated and the sales revenue that can be generated.

RNC is reducing debt which in turn is increasing free cash flow which in turn will allow increased dividends. I believe the Co has turned the corner and is heading up. As I have previously said jump on the train before it leaves the station. If you read my posts over the last few years I have always been positive about this stock so I am not ramping it up.

I love what it is doing and it is the way of the future for my industry.

Best of luck