RC365 Holding (LON: RCGH) is down 6% from its recent and most absurd high. But as we keep trying to point out about RC365 Holding there's a lot less to the company than meets the eye. Yes, less.
We are insistent that this is the meme stock idea moving over from NASDAQ to London. Further, that this is all about slightly financial Hong Kong stocks, as with what was happening over in the US with AMTD, Top Financial and the like. It's just easy to say there's something wondrous about moving money around the perfumed East. And we don't believe the valuation for a moment as a result. We simply do not believe that RC365 is worth £200 million. The latest burst came from this announcement: “The upgrade to the mPOS program will enhance the user interface, debug any possible bugs of the mPOS app and improve the stability of the app for Android and iOS users. The total consideration payable, to be satisfied in cash, is HK$1,000,000. The consideration payable will be financed from the Company's existing cash reserves. Regal Crown expects to generate revenues during Q4 of FY24.” But that's an announcement that RC365 is spending the money to get the work done. This is supposed to add considerably to the valuation - especially as HKD $1 million is about £100,000 (roughly). We simply don't regard this as being sensible.
RC365 Holding share price from London Stock Exchange.We have talked before about RC365: “So, Hatcher Group hires RC365 for £1.5 million to write an app. This increases the price of RC365. Hatcher Group then sells shares for a £4 million or so profit above the price they would have got before the announcement about the app contract. RC365 shares begin to decline significantly once the share sale is announced to the market. Well, yes, OK. Clever. Works, is wholly and entirely legal. Wish we'd thought of it ourselves in fact, even if we did still manage to spot that there was something that wasn't going to make us shareholders out here rich about it all.”
We've also talked about RCGH here and here and here.
Quite possibly it's some blindness of ours but we really cannot see what there is of value here. Other than that people like playing in the shares that is. We do therefore expect it all to come tumbling down at some point.
