do the forward sums, page-12

As the instigator of the "Do the Forward Sums" link some months back, I am bound to defend, and stick my neck out against, all the "chartist" delusions. I am not denying the very, very, short term speculative value of chartism, but the trading game played with RHC is a fool's paradise fraught with danger. For one thing, the stock is not all that liquid.

"Some big holders want out" ? Oh really? Where is the evidence? No major institutional holder has made an announcement about decreasing there holdings, as far as I can tell.

YES, I know that one major brokerage has recommended shorting RHC on the grounds that it doesn't generate enough "free cash flow" because it invests so much of its cash flow etc and has a relatively high P/E. On the contrary, it deserves a high P/E on EPS performance and outlook! But brokerages love traders and shorting etc---the incentive is bread-and-butter brokerage fee income.

There are more deals on the way for RHC, more expansionist moves to come but none knows just when. The traders will get caught-out playing their "head-and-shoulders" game. Indeed there is "nothing wrong with the company" as Masel correctly points out. This latest move downwards is not a structural re-rating move; it is similar the move some years back from $19 to $16 on similar macroeconomic & geo-political nervousness and warnings about free cash flow and P/E etc. I trust that the traders that time around got out and back in, just in time to enjoy a significant price re-rating?