It looks like the market thinks that RCR’s venture into building power stations is going to turn out like Forge’s experience. At the least it looks like they are buying themselves a job. Or is the fall in price because the market anticipates the need for a large capital raising and/or large borrowings by forge to fund station project.
The recent sustained and otherwise inexplicable share price fall before the announcement suggests that there were people in the know who were front running the announcement. I feel like a mushroom - very disappointing.
I have owned this stock in varying amounts since all they had was facility somewhere in Perth. I remember the prospectus had a plan, which showed the power transformer in the corner of the site.
RCR Price at posting:
$1.92 Sentiment: None Disclosure: Held
