RUG Renn Universal

 
TIDMRUG 
 
RENN Universal Growth Investment Trust PLC 
 
                             June 2011 Newsletter 
 
We have been updating you between the annual and interim reports using 
newsletters. These are not intended to provide detailed financial information 
as in formal reports, but are intended to provide an overview of your Company's 
activities during the previous quarter. 
 
Net Asset Value 
 
Your Company's net asset value at 30 June 2011 was 293.45 pence compared with 
313.86 pence on 31 March 2011, a loss of 6.50% against a loss of 1.63% for the 
Russell 2000. 
 
Top 10 holdings as at 30 June 2011 
 
Portfolio Company       Sector                              Value  % of assets 
 
Cover-All Technologies  Application Software          $19,262,000         22.4% 
 
AnchorFree              Internet Software &           $16,261,734         18.9% 
                        Services 
 
PHC, Inc.               Healthcare                     $4,525,353          5.3% 
 
Dynamic Green Energy    Alternative Energy             $4,000,000          4.6% 
 
Fushi Copperweld, Inc.  Industrial Goods               $3,508,375          4.1% 
 
Access Plans, Inc.      Personal Services              $2,962,093          3.4% 
 
Bovie Medical Corp.     Healthcare                     $2,904,000          3.4% 
 
Points International    Marketing Services             $2,894,450          3.4% 
 
SinoHub, Inc.           Electronics                    $2,668,234          3.1% 
 
Integrated Security     Finance                        $2,659,017          3.1% 
 
Your Company's portfolio is characterised by a participation in the growth of 
China as well as a large participation in smaller entrepreneurial US based 
companies. At 30 June 2011, the value of the US-quoted companies represented 
44.6% of the portfolio, while the US-quoted, Chinese based companies 
represented 20.2% of the portfolio. The unquoted companies represented 25.9% of 
the portfolio. As at 30 June 2011, the asset allocation of the invested 
portfolio was as follows: 
 
US quoted US based companies (12 companies)                     44.6% 
 
Unquoted US based companies (3 companies)                       21.3% 
 
US quoted China based companies (13 companies)                  20.2% 
 
Unquoted China based companies (1 company)                       4.6% 
 
Cash Equivalents                                                 9.3% 
 
                                                                 100% 
 
Cover-All Technologies (AMEX: COVR) licenses and maintains software for the 
insurance industry. Its product platforms are robust and can be used for back 
office compliance, billing, underwriting and the issue of insurance contracts. 
COVR reported a strong first quarter with revenues up 38% and net income up 67% 
against the same period last year. The company expects 2011 to be a strong year 
with the release of new products during the first and second quarters of 2011 
including NexGen Commercial Automobile, NexGen Commercial Package and NextGen 
Business Intelligence products. The company believes its new automobile product 
for 50 US jurisdictions creates a significant competitive advantage as it 
incorporates all insurance carriers, vehicle types, forms, rating algorithms 
and statistical codes to various distribution channels without the need for 
separate portal products. The release of the new NextGen commercial and 
business intelligence products have been met with rave reviews and have 
resulted in the company adding new key individuals with a wealth of industry 
contacts to their sales and marketing team. Another significant accomplishment 
was achieved in May 2011 when the company announced that its shares were moving 
from the Over-The-Counter Bulletin Board exchange to a listing on the New York 
Stock Exchange AMEX. The company's share price increased over 16.4% for the 
three months ending 30 June 2011. 
 
AnchorFree, Inc. (Private) is the world's leading ad-supported virtual private 
network ("VPN"). Hotspot Shield enables users to access all online content 
anonymously and securely from any location in the world. The technology also 
enables the use of services such as Skype, Facebook, YouTube, Twitter and 
Google which are often blocked by telecom companies around the world. 
Individuals and companies from over 100 countries are using this VPN service 
with over 9 million unique users and over 2 billion page views per month. The 
company continues to garner positive press and additional users. We expect 
AnchorFree's revenue to continue to accelerate, not just because of the 
increased number of users, but also because of increased revenue per user going 
forward. The company expects to release new applications and a new payment 
service later this summer. For the three months ended 30 June 2011, revenues 
were up 53% and earnings before tax were up 30% against the same period last 
year. On a sequential quarter over quarter basis, the June quarter sales and 
earnings before tax for 2010 and 2011 were up 24% and 44% respectively over the 
March quarter results. We are very encouraged by the company's performance yet 
continue to keep the progress of the company under close scrutiny. 
 
PHC, Inc., (AMEX: PHC) is a leading provider of inpatient & outpatient mental 
health and drug & alcohol addiction treatment programs in the U.S. Specifically 
it operates two substance abuse treatment centres, two psychiatric hospitals, 
one residential treatment facility and eight outpatient psychiatric centres. 
For the three months ended 31 March 2011, the company reported revenues up 14% 
and net income up 27% from the same period a year ago. PHC recently announced 
the closing of the acquisition of MeadowWood Behavioural Health in New Castle, 
Delaware. This psychiatric facility should add approximately $14 million to 
revenues. More significantly, on 24 May 2011 PHC announced the signing of a 
definitive merger agreement with Acadia Healthcare. Acadia's 19 behavioural 
facilities count 1700 beds in 13 states and produce income of approximately 
$260 million. Given PHC's smaller bed count of 270 beds in 4 states and 
trailing 12 month revenue of $59 million, Acadia will own approximately 77.5% 
and PHC will own approximately 22.5% of the combined company. The investment 
bank Jefferies & Company arranged the merger. We suspect Jefferies has 
additional deals in the pipeline that could make PHC a substantially larger 
company. The stock-for-stock transaction is expected to be completed in the 
late summer. The company's stock price increased by 25% for the three months 
ended 30 June 2011. 
 
Dynamic Green Energy ("DGE") (Private) is one of the largest and most 
experienced photovoltaic module assemblers in China. The company's operations 
also include ingot and wafer manufacturing as well as photovoltaic cell 
production. Among its customers are some of the world's most technologically 
advanced solar companies including SunPower Corporation (NASDAQ: SPWRA). DGE 
brought in a new CEO and CFO last year and the results have been favourable 
though the investment to date has not turned out as expected. For a number of 
reasons DGE missed the opportunity to participate in an initial public offering 
thus limiting its ability to grow. For the six months ended 30 June 2011 
revenues increased 138% and earnings before interest, taxes, depreciation and 
amortization increased 426% over the same period last year. Your Company owns 
convertible debt which matured in June 2011. DGE was unable to repay the total 
debt in a timely fashion and thus the convertible note holders have entered 
into a restructuring agreement with a new proposed maturity date of 10 December 
2011. 
 
Fushi Copperweld, Inc. (NASDAQ: FSIN) manufactures bimetallic wire products, 
principally copper-clad aluminium (CCA) and copper-clad steel (CCS). Its CCA 
and CCS conductors are used as substitutes for solid copper conductors in 
applications where specific electrical or physical attributes are necessary. It 
primarily serves applications in the telecommunication, electrical utility and 
transportation markets. For the quarter ended March 2011 revenues increased 11% 
to $66 million and net income decreased by 24% to $6.8 million against the same 
period last year. Fushi's first quarter is usually its slowest and the slowdown 
in Chinese 3G build-out also put pressure on earnings. We expect the utility 
and automotive vertical markets to provide abundant demand for future growth. 
Fushi has retained Bank of America Merrill Lynch in conjunction with a proposed 
transaction to take the company private at $11.50 per share. The company has a 
strong balance sheet with $135 million in cash. The company reiterated its 
previous annual guidance of 2011 earnings of between $1.15 and $1.25 a share. 
The company's stock closed the month of June at $5.73. The stock price 
decreased 28.5% for the three months ended 30 June 2011. 
 
Access Plans, Inc. (OTCBB: APNC) is a leading membership benefits marketing 
company with two distribution channels. The Wholesale/Retail Plans distribution 
channel specializes in turnkey, private-label membership benefit plans that 
provide discount products and services, protection benefits and retail services 
to more than 1 million customers in the United States and Canada. America's 
Health Care Plans (AHCP), the Company's Insurance Marketing distribution 
channel, is one of the nation's largest independent agent networks and provides 
major medical, life and supplemental insurance products to individuals. For the 
three months ended March revenues increased 2% to $13.8 million and net income 
increased 155% to $1.9 million compared to the same period last year. For the 
six months ended March revenues increased 5% and net income increased 107% to 
$3.4 million. The balance sheet is in good shape with no long term debt and 
$9.1 million of cash. On 11 November 2010 the company announced plans to 
explore strategic alternatives to deliver value to shareholders including 
considering taking the company private. The company's stock price increased 
over 4.5% for the three months ended 30 June 2011. 
 
Bovie Medical Corp. (AMEX:BVX) engages in the development, manufacture and 
marketing of medical products and devices, primarily electrosurgical generators 
and disposables in the United States and Canada. For the quarter ended March 
revenues increased 10% and net income was $492,000 verses a loss of $226,000 
during the same period last year. The company continues to place great effort 
and resources into the regulatory approval of its new J-Plasma surgical hand 
piece. The J-Plasma surgical hand piece will offer soft tissue coagulation and/ 
or tissue cutting with no grounding pad required as with other electrosurgical 
products thus minimizing the risk to patient and surgeon. Once approved, we 
believe this new product will enhance certain surgical procedures and could 
ultimately contribute to a new standard of care. The feedback from surgeons in 
diverse specialties has been most encouraging. Management is convinced that the 
J-Plasma addressable market is large and will be the prime engine of growth 
going forward. The company's stock price decreased over 15.8% for the three 
months ended 30 June 2011. 
 
Points International (NASDAQ: PCOM) is the world's leading reward program 
management platform. The site was named one of the 30 Best Travel Sites in 2008 
and 28 Best Travel Sites in 2009 by Kiplinger's. At Points.com consumers can 
earn, buy, gift, share, trade, exchange and redeem miles and points from more 
than 25 of the world's leading reward programs. For the three months ended 30 
March 2011 revenues increased 21% and earnings before interest, taxes, 
depreciation and amortization increased 37% over the same period last year. The 
guidance for calendar 2011 is for revenue to increase 30% over 2010 and net 
income of $0.20 to $0.40 per share. During the quarter the company formed a 
partnership with PayPal and Best Buy which should help the retail channel 
growth. We are optimistic concerning the growth, scalability and increasing 
profitability of Points. The company's stock price increased 10.9% for the 
three months ended 30 June 2011. 
 
SinoHub, Inc. (AMEX: SIHI) is an electronics company that engages in the 
manufacture and distribution of custom, private-label mobile phones for 
developing countries. The company also provides electronic component purchasing 
(ECP) and supply chain management (SCM) for third party businesses. SinoHub has 
begun a strategic initiative to develop its own mobile phone brand in China, 
the world's largest mobile phone market. The company will continue to make and 
sell private label, custom design mobile phones for distributors and operators 
elsewhere. For the three months ended March revenues decreased by 1.6% and net 
income increased by 2.6% over the same period last year. The company's stock 
price decreased 42.3% for the three months ended 30 June 2011. 
 
Integrated Security Systems (OTCBB: IZZI) is a publicly traded shell company 
with cash equivalents of approximately $4.1 million, total assets of $5.4 
million and total liabilities of just $306,549. Your company owns approximately 
47.4% of Integrated Security Systems. RENN Capital Group is looking for a 
favourable private company with which to merge. 
 
Conclusion 
 
With the U.S. listed Chinese companies trading at historically low multiples, 
superb operating performance of our top two holdings, and the addition of a new 
specialised semiconductor investment, we look forward to the prospects of a 
good finish to the fiscal year 2012. We also anticipate upcoming corporate 
actions which should create value for shareholders. Finally we believe our 
discount to net asset value creates an opportunity for investors. 
 
 
 
END 
 

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