You guys are way too negative about the share price. It doesnt...

You guys are way too negative about the share price. It doesnt matter to RCR how much of the working capital is collected or not and they would obviously have been well aware of all the issues set out yesterday before entering into the heads of agreement. Due diligence could put up something nasty but by effectively writing off $25-30m yesterday they will have gotten rid of most if not all skeletons. RCR clearly has the cash and debt facilities available and on FY14 numbers it is highly eps accretative for them - they won't be looking for a reason to exit.

Not convinced they will collect any of the working capital? c'mon - they wouldn't just put the figure of 29-39m up yesterday for fun - this is writing off a huge amount and seems very realistic to me. away from the context of the proposed scheme it would be a disaster (and if the scheme falls through i agree the share price will plummet into the 20-30c range)......but in the context it is, they are clearly just getting what they can realistically get in the short term. it is a windfall for their customers and they will jump at it i reckon. no reason not to at least work around the low end of the estimate (29m) when working out value.

Have to be 100% sure it will go through? really? you cant be 100% sure about anything. share picking in this kind of arbitrage opportunity is about assigning value weighted probabilities. i reckon there is a high probability of punters getting 62c+ back and it is a bargain at 52c for 3-4 months work. if RCR don't buy them the likes of CLO are cashed up and sniffing around anyway not to mention others.

none of this excuses the disgraceful management and, frankly, bordering on dishonest representations that have been made over the last year. just trying to make an assessment from now onwards. i can understand why the risk averse would take the 52c - but it's likely you are giving up 20-30% gain for a few months work