Sub-10c Club

Hi all,

As you have all no doubt observed the share price of RHT has been in free fall after the shocking quarterly that was released not too long ago. From 18c only a couple weeks ago it is now almost at 12c and falling rapidly, evident in that massive wipe of 13c at the close which had been support in the market depth for some time. With that wipe it is hard to tell how fall this shall fall tomorrow and in the days following, but it doesn’t look good at all.a While the depth at current prices is quite weak, so not worry as 2c is strong support so it probably (well maybe hopefully is a better word) won’t go to $zero.

While I appreciate that emotions tend to dictate investment decisions, you all must let go of your so called love of RHT. You don’t love it, you are desperate for it to rise again, desperate to reach the point of break even. This is more akin to Stockholm Syndrome; that is not real love, that is love forced out of a desire to survive.

RHT has literally nothing going for it. Zero revenue growth (in fact declining sales), no market for its useless products (scans that nobody needs) and not much in the way of cash. Yet for some reason it is priced like a tech growth stock, with a price to book ratio of 8 and an astronomical revenue multiple. Given the lack of potential, the horrid fundamentals and the massive risk of bankruptcy with this stock, a price to book ratio of less than one, and a similarly low revenue multiple would be more suitable, which a share price of 2c would provide. There is no fundamental support for this stock, and with recent selling, technical support is also non existent.

This ship is sinking, don’t be the last one to the life boats!