RNS - Renaissance

[Lizard]

Last thread not posted on for 18 months (deservedly!):
RNS: 9% drop today

However, given the price action of the last few days, thought it might need a new thread with a new title. Price has gone from hovering around 22cps up to 27cps and possibly the buyer planning to clear out the offer through to 30cps this morning is for real?

Actually, I think RNS is one of those NZ shares with a December year end - which may be an advantage in putting the GFC behind them severely but promptly. On historical metrics, RNS looks potentially quite cheap - although yet to see how ghastly the final result for 2009 turns out to be.

I still own a small parcel from pre-disaster days and have added a few recently as a punt, but still only tiny hold for me. (I can feel P making a mental note to remember this one for a lecture on the sins of averaging-down if it all turns pear-shaped!)

[percy]

luckily i donot have shares in rns.
i note new ceo's cv is impressive.richard webb.
murray wood onto board makes sense.
old buffet saying 'good people join a bad company,it is the bad company,s reputation that stays intact'
ps is this the old triumph industries that i did doe on?

[Lizard]

ps is this the old triumph industries that i did doe on?

Yes it is.

Of course Abano is the one for proving bad companies occasionally go straight... though probably only if Eric Watson is selling out.

And Renaissance is not all bad - it has provided a few stunning trades in its "good" years.

[Phaedrus]

I still own a small parcel from pre-disaster days and have added a few recently as a punt. (I can feel P making a mental note to remember this one for a lecture on the sins of averaging-down if it all turns pear-shaped!)

Liz, you may perhaps have been a little bit naughty if you bought RNS before the Buy signals shown below, but your real sin was holding on to your original investment when RNS was in an obvious downtrend.

Can we assume that, seduced by the apparently good fundamentals, you chose to ignore prevailing market sentiment?

There must be a lesson in there somewhere!

[Lizard]

Actually, percy, perhaps RNS just did too well out of distributing Apple for a couple of years there? Investors hoped the cashflow and divs were sustainable which turned out not to be the case. RNS tried to do the right thing by diversifying income streams, but the transition out of the Apple era just too severe to replace.

Maybe if they'd raised new capital at the peak and gone for broke on a larger M&A play, they might have still held up ok? Though hard to think what sort of businesses would have been suitable fit.

[Lizard]

Can we assume that, seduced by the apparently good fundamentals, you chose to ignore prevailing market sentiment?

Probably - I think where you put that quote in there might have been an initial break in downtrend? Sadly, not confirmed or I read it prematurely, but I'd gone and bought in a portfolio that only does long term investment in income shares, so I was reluctant to sell a small holding and possibly muddy IRD's view on the rest.

(I do trade in another account and declare it for tax purposes)

[percy]

lizard
i shot from the hip without thinking.
you may have picked a turnaround with rns.
looks to have broken down trend and still alot of good in the company.
i will watch sp with interest.

[percy]

lizard
still may be a pig in poke.
red flags when MD and finance director resign.
i take take that as meanning they have not got the company on course.
the december balance date an report i would think will only confirm this.
should however provide information to give us a chance to work out what the company is worth.the real test will be what the new MD can achieve and the direction or course he steers.
i will go and have a look at moorhouse ave .store.i worry they are just another retailer in
an overcrowded market.
the school business could be good as i cannot see dick smith and jbhi fi trying to get into that market.
i sell books to school libraries and find most people donot understand the market.
rns do and have done very well.
dick smith jbhifi etc not set up for schools.

the school business i would think could be very good.

[percy]

lizard
had a look at moorhouse ave store at 20 past one today.
good setup.
staff flat out with 24 customers,buying!!!!!!!

[Anna Naum]

See ex CEO has gone to major competitor who is setting up in NZ