Ridiculous, RC 365 Holding, (LON: RCGH) up 27% on credit card agreement

RC 365 Holding (LON: RCGH) shares are up 27% today. That makes a near 100% rise in RCGH shares this week. This is also entirely ridiculous, it's the very worst of that NASDAQ speculation on vaguely financial stocks out in the Far East coming to London. For the actual deal that has been announced is as follows: “RCPAY Limited ("RCPAY"), signed a BIN Sponsorship and Co-Brander Agreement ("Agreement") with Key Solution Venture Limited ("KSV"), a licensed MasterCard Worldwide Issuer in Hong Kong. This Agreement will allow RCPAY's brand to be printed on a Mastercard Credit Card which can be issued to Hong Kong Residents.” So, err, they're going to issue branded credit cards then? So, how big a thing is this going to be? “"This is a major milestone for RCPAY in expanding its existing service offering to its customers. We expect the card program to be launched by end of Q2 FY24 and to reach 3,000 cardholders by Q4 FY24."”

Now note what has happened to the RCH 365 share price:

RC365 Holding share price from London Stock Exchange

Now think on this for a moment. At that 60 pence - before this latest announcement - RCHG had a market capitalisation of some £60 million, give or take. After the announcement it's at £120 million (actually, £118 million). So, the additional value from this announcement is £60 million. That's applying a valuation of £20,000 to each credit card issued. That's absurd.

But then we've had our issues with RC 365 Holding: “RC365 Holding is up £80 million on building an app - that's all, building an app” and the fuller story at RCGH: “And now the last piece of the scheme drops into place.” Issuer: RC365 HOLDING PLC, Seller of stock: Hatcher Group Limited, number of shares sold: 5.5 million, date: 22-Jun-2023.” Ah. On 22 June RC 365 was up at 80 pence and above (often above, during the day). Before this all started RC365 was at 20 pence and change. 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.”

Other than calling the next move in the price frenzy we can't see any way that shareholders make money out of this.