Forum Archive Index - June 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Dean,

> 
> I can't see your logic in regards to the bank draft at all.  For one
> you could arrange one over the phone for about $20- $50 which means
> that for the transaction to be uneconomic the investors would have had
> to have a total share holding of roughly only $200- $500. Unlikely.
>

The current shareprice of  RCH ( 30c) is well below the all time high of 
some  $3 reached in 1997.    Those $200-$500 shareholders you talk 
about had holdings worth $2000-$5000 back then.   It wouldn't surprise 
me at all if there were plenty of shareholders like that still on the share 
register.  

>
> And concerning the question of whether the company should have advised
> its owners to pay in US$. is "no" the best that you can come up with. 
> 

RCH gave people the option to invest using $NZ or $US  as a matter of 
convenience.     Not as some kind of arbitrage opportunity, to sort out 
the dumb investors from the not so dumb ones. 

You would have them waste thousands of dollars of shareholder funds 
on another mail out?   Exchange rates have been going up and down 
for as long as the company has existed in its present form.    All a 
shareholder needs to do is contact their bank  to see which is the 
cheaper currency to use.    Besides even if RCH did make a 
recommendation it would be out of date by the time it was printed and 
in shareholders hands anyway!

>
>  In my opinion this issue of
> integrity is one of the reasons that our market is seen as one from
> the 'wild west' from the perspective of mum an dad investors and
> precludes their involvement 
>

Chastising a company because they didn't advise shareholders that 
exchange rates do go up and down  is not IMO an issue of integrity.
There may be problems with integrity in the NZ market, but this isn't 
one of them

SNOOPY



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