Ann: Corrected RCR Prospectus - Entitlement Offer, page-2

Again, my up-front disclaimer: I have been sooooo wrong on RCR before, and if I sound positively delusional, I am happy for others to tell me so.

However, I am wondering:

Average volume traded in RCR between the beginning of July 2018 and when RCR went into its trading halt on 27.07.2018 was just under 1 million shares per day.

Since it came out of its trading halt, a total of 56 million shares have been traded.

Over the last fortnight, average volume per day is about 1.46 million shares per day.

Retail shareholder entitlement shares can be traded on the ASX starting 27th September.

Now, I believe many shareholders who are completely fed-up with RCR have sold out by now  -i.e. part of the 56 million shares already traded.

Others would have sold some of their RCR to fund their participation in the entitlement offer - again, part of the 56 million.

Then there is the group of holders suffering from PTSD, who - since [effectively being forced to] taking up their entitlement offer - have managed to cope with this the situation by living in denial and they simply do not think about RCR any more.

The bad news for them is that on 28th September they will get their CHESS statement showing them their increased RCR holding. Some of them might only then sell some of their holding - after the reminder...

The question that occupies my mind is: when will the post-entitlement selling pressure ease?

Surely - all else being equal - once we have worked through the entitlement offer "overhang", there ought to be some level of share price recovery - not all the way back to the Theoretical Ex-Rights Price (TERP) of $2.12, but surely somewhere above the current price range?


Obviously, all of this is contingent on "all else being equal" - i.e. if RCR's operational performance had further deteriorated, then that too could lead to on-going share price weakness, until the company can demonstrate otherwise.

I wonder what the morale within RCR's employee and customer base is and is it consistent with that of its shareholders?

Interested in other people's thoughts.

All IMHO only, and DYOT