It is amazing that more shares have not hit the sell side of the...

It is amazing that more shares have not hit the sell side of the ledger given the price increase. If directors keep buying, the free float of this company will be non-existent.

I was looking at GXL, IVC and GEM over the weekend as I expect RNC to adopt a similar growth by acquisition model. It is very interesting to go back 5+ years and find the inflection point for each of these companies and how they managed their growth over the years. I highly recommend this exercise to holders and potential holders despite the drawbacks of hindsight.

It is way too early to make a call that RNC will be the next GXL, GEM or IVC but I certainly believe RNC have created a business model/processes that can easily be replicated within a fragmented industry.

I expect mgmt to secure the low hanging fruit (organic growth) over the next 12 months and then embark on a growth by acquisition strategy. The experience of having their hands tied with debt should ensure a cautious approach.

If my interpretation of the Macquarie industry report is correct a large number of property mgmt agencies are run by sole proprietors who are looking to sell, but through staged acquisitions. This is a great way of ensuring continuity of the RMA's (lower risk) and staff. It also spreads the funding over a few years contingent on performance (again, lower risk).

At 29c, I no longer believe RNC is cheap based on past performance. Buyers at current levels are already paying for anticipated growth, IMO. There is a risk that the Dec HY results will disappoint due to the additional staff, office renos and software roll outs.

That said, I won't be selling any of my shares. I want to see how this plays out over the coming years. 29c may well be seen as an incredible bargain.