I have been a keen follower of RHM since it listed and have traded it all the way up to its highs of 60c plus. Luckily demands on my funds resulted in me selling out near the highs otherwise I would have watched my profit largely dissappear as the sp fell to its current levels despite the strong fundamental value.
I started to accumulate again at around 30 cents and I gusess, like the rest of the retail investors, did not take up the SPP.
what I find amazing is the lack of regular and meaningful updates from the company. For example what was the outcome of the SPP? Was it underwritten? If not, how do they plan to deal with the cash demands that they stated in the SPP documentation were to be satisfied by the proceeds of the SPP?
It's quite likely that some or all of the recent heavy selling may be in response to the current turmoil - margin calls - stop loss triggers etc - but I believe an argument can be made that the shares are currently trading in an "uninformed market" and a comprehensive "market update" is urgently required.
I'm no longer sure whether my sentiment is a "screaming buy" at these levels or "somebody knows something and its time to bail". I just do not feel that the company is keeping me adequately informed.
RHM Price at posting:
22.5¢ Sentiment: None Disclosure: Held
