what's happening with rcr?, page-4

Granev

RCRs EBIT margin has been reducing for the last three years, from 7% (hardly anything to write home about) to 2.99% last year. Their ROE and ROA have been mediocre at best even in the boom years, but are now in mid single digits.

This is why the company is so focused on cost control and have appointed new CEO who has experience in this area.

There is simply no rational reason to own this business until they prove they can extract a higher EBIT margin from existing revenues.

There is also considerable downside risk. Simple probability says this is not a wise place to park your funds.... at least not in its current state.

Have a look at ANG. Margins 16 - 17% Average ROE 27% for last six years. Huge growth potential. Market dominance. Very simple business model. Competitive advantages. Its just a better business and shareholders will do much better over time than shareholders of RCR.

Cheers
Sauced