RCI 0.00% 52.0¢ rocklands richfield limited

You have to ask yourself this: why did Jindal straight off the...

  1. 1,537 Posts.
    You have to ask yourself this: why did Jindal straight off the bat purchase shares from Benny at 42 cents? They obviously see (or saw) value in RCI at that price.

    I think this game is far from over. RCI will get taken out and it will be over 50 cents (because of the options that Benny has at a strike price of 50 cents).

    Just a matter of patience.

    And worst case, they don't get taken out, I think the demand for coke is quite strong, prices are recovering so RCI should be back to profitability in no time. Plus RCI has over $26 million in cash, more than enough to ride out any earnings volatility.

    I'm happy that management sent Jindal packing. I have never seen such extraordinary (silly) conditions in a non-binding takeover clause.

    Ralph
 
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