What am I missing?, page-159

I accept you criticism, my post was hasty as I was short on time, I will try and articulate my thoughts are little more.

Yes the company has plenty of options on the table regarding the loan, the two I presented were merely for illustrative purposes and in response to a post regarding the huge cash balance RRP has. The intention of the post was to illustrate two things, the first that you consider the balance sheet on 'net' terms, cash means very little if you have liabilities that are due to paid in the near term, which RRP has at the present time. The second point of the post was that either way, the loan we need to be repaid at some point in time and shouldn't be dismissed merely because it came from the majority shareholder. I am not going to speculate on which option they go with, it may be something we haven't thought of and it's a fruitless exercise.

To further illustrate my point about the importance of NET CASH here are some back of the envelope calculations based on the 2016 annual report. The numbers obviously don't include the 5 months of sales since, so the current cash balance will obviously be higher. Those posters who have a more updated cash balance can make the necessary adjustments. Looking at the balance sheet RRP had $104m in current liabilities with non-current liabilities at $49m. Current liabilities are those which are due to be paid within one year so lets assume they will need to be paid this financial year. Interestingly, the loan in question only makes up $48m of the current liabilities so the rest will definitely need to be paid this year. On the asset side add the cash, current receivables and inventories (the last two are not strictly cash but I will include them because they can be converted to cash easily) and you get $111m. Now, lets just assume this year they pay all current liabilities, thats leaves them with 11m in cash. Now of course this isn't current and the company has generated cash in the last 5 months and its unlikely it has incurred any more significant current liabilities. However, even when you add the cash they have generated they are not in the huge net cash position that most people think. Posters who are commenting that RRP will have 150m cash at bank within the next few months are upramping to the extreme. What good is 150m in cash when you have $111m in debts to pay, you essentially only have $39m NET CASH.

I normally don't post on companies I don't own because I have no financial interest so what is the point. However, I have been watching the RRP drama since last year and was going to invest until I did more research. Ultimately I decided the company had too many question marks, questions which I posted on this thread with my analysis. I also notice an abundance of shameless upramping on HC and Twitter which should give any trader reason for caution. A number of known promoters (some on Twitter who were banned on HC for continuous up ramping) are continually calling for big reversals, saying its a no brainer etc etc but how has the company performed since it relisted? It has been absolutely smashed by wave after wave of supply. Every time a rebound looks imminent and the buy side builds it gets smashed with supply. Now take a step back and pretend you don't own the stock, would you invest in this stock right now based on your current information? Would you buy first thing tomorrow morning or would you be waiting and watching to see if it continues to fall lower or for that endless supply to dry up?

For the record I am not trying to downramp so I can buy cheaper, I am just giving those on this thread an alternative view. You can ignore it or call me names but I would prefer rational debate about why you think I am wrong. After all that is suppose to the purpose of HC, investors coming together to share ideas and different views, some of which you may strongly disagree with.

s.loeb