RE: simple mathThat is a pretty broad range but I agree with you. The way I look at this company is that there is significant potential without Xign. Xign is blue sky or gravy or whatever you want to call it. The current share price is easily justified by what RDM has going for it as a company. The scanners they make, the technology they licence, the major companies they managed to partner with; All of it adds up to great potential.
The fact that Xign does not report makes it impossible to stick a value on it.
The disappointing thing is that listening to the speeches at the AGM I did not think they were in need of money. As far as I know they don't need to file a prospectus with this financing so what is really going on is anyone's guess.
They could keep doing these until RDM’s ownership is down to 5 or 10% with no ability for us as RDM shareholders to figure out if there is any value to the investment.
Our only option where it concerns Xign is to trust management.
I do where it concerns RDM’s operations (Though as a guy who has held this company since the nineties I think this is the year to show us that there is money to be made. They made some bold predictions at the AGM and they gave us some lofty goals. I think in the next two quarters we will see if they are full of it or if it is a worthwhile enterprise.)
Where it concerns Xign’s operations my gut tells me that RDM has very little control left.
There will not be an IPO anytime soon and it will be years before we can stick a value on the investment. Here is a thought though. With RDM’s share price at or near 3-year highs they could have easily raised the money through an RDM financing and increased their investment rather than seeing it further diluted. They did not. When they called shareholders to make sure as many as possible would attend the AGM I figured it would be something like that but it was not.
No way of discerning whether we should read anything in to that.
Just an observation…