Just working on what we do know. They have sought shareholder approval twice. Either they couldn't find a buyer last year, or they were unable to issue because of the blunder that occurred with the recent majority transfer.
Sinotrans specialise in the same 'dry bulk haulage' that Richfield does, and they own over 2000 companies worldwide. It makes sense to invite them in at 16 cents, and then let them buy the rights at a higher price. I can't see why a company the size of sinotrans would buy 17%, if they weren't going all-in.
On the other hand, RIS owners have toiled for 16 years to build it up to where it is today. They are not going to give it away. There are roughly 770 of the 1100 shareholders that own less then $500 worth, with 90% of the company in top 20 hands. It is very tightly held and most of it is long term, and with no dividend, despite profits.
And if sinotrans were to offer $1 it's still only $15 million dollars. Aussie dollars too, not Singapore dollars! So the exchange rate continues to improve in their favour. They probably will wait until the Chinese New Year, on February 29, which is about when the annual report is due. Here's hoping something happens!
RIS Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
