I think this company will disappoint some people here I guess. 2...

I think this company will disappoint some people here I guess.

2 reasons:
- While probably the worst is over in the mining services sector, the capex hasn't returned yet. RDG is a capex business, not opex.
- The annual report revealed they are left with just 53 people "At 30 June 2016, the Company employed approximately 53 people (2015: 250 people)". And many of these are employed 4 days a week or other part time arrangements. So I guess next half year's revenue will be a fraction of last half, considering they entered H2 with 170 employees..

I think the odds are in favour of this company in the long run, but I do believe they will see some difficult times before RDG turns around..

I thought it was an interesting play at 1-2 cents, but now there is more risk involved in the short-medium term.