Hey Mates,RED is quite promising. But Hold on a second - just...

Hey Mates,

RED is quite promising. But Hold on a second - just think about the 12% dividend. If the share price keeps falling then we may have 13%, 14%, 20% dividend?

An increasing dividend yield is not a good sign for small caps especially with falling share price.

On the positive note, RED has got a positive write up in last months Money Magazine. However I was looking at a valuation method that Analyses RED as an example here:

http://ozstock.blogspot.com.au/2012/05/analysis-red-red-5.html

The summary from that blog article is: RED is very close to being a favourable buy, but not yet. I think this makes sense, once more good news come, the SP will shoot up. If it has solid resources, then there should still be time to jump in.