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Rangers are still big business in Scotland

Rangers may be playing three divisions below their Glasgow rivals Celtic but they still offer good value to investors.

When Rangers International Football Club was listed on the Alternative Investment Market (AIM) at 70p a share in December this valued the club at £45.6m. The stock hit a high of 94p by January 2 before a steady slide to 58p, just days before the club secured the Scottish Football League Division Three title.

It is almost 20% below the original price. Given the firm raised £22m on its initial offering and says it still has much of that in the bank, it seems a big dip in fortunes and the escalation of boardroom tensions in recent weeks has not yet led to the share price falling further.

David Bick, chairman of City firm Square1 Consulting commented in the Herald, said: "An unsettled board always unsettles investors and there are still obviously boardroom issues. [Rangers] still appears a good investment, which should in theory keep getting better, but you won't see that reflected in the share price until these issues are resolved. "

At Rangers, investors have been attracted by a debt-free business with regular income from a large fan-base, supplemented by sales in new markets.

But for growth in share price the club will have to deliver a quick return to the SPL and get back into European competition as soon as possible to keep attracting supporters, sponsors and business partners.

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