Just completed a basic analysis of this company. Might be of interest if anyone is following the stock. Just click on the image below:
(https://substackcdn.com/image/fetch/f_auto,q_auto:best,fl_progressive:steep/https%3A%2F%2Frecastinvestor.substack.com%2Fapi%2Fv1%2Fpress_kit%2F70420954.jpg%3FbgColor%3D%25238AE1A2%26textColor%3D%25231a1a1a%26hash%3D1360880263%26version%3D9?utm_source=substack&utm_medium=email) (https://recastinvestor.substack.com/p/retail-food-group-rfgasx)
Ngā mihi nui ki a koe, that's an excellent summary of their current state of affairs. I made a small punt when they were in the fours... have not been sufficiently confident to go again.
Tipped by The Bull today as a Buy -
RFG is a food and beverage company. Brands include Donut King, Crust Gourmet Pizza and Michel's Patisserie. RFG recently reached an agreement to settle legal proceedings instigated by the Australian Competition & Consumer Commission in relation to franchisees. RFG will compensate franchisees and waive debts. RFG will pay about $10 million. The company's shares have risen since the settlement to trade at 8.8 cents on January 12. It may make more gains, but keep an eye on the news flow.
A look at the interim accounts to 30.12.22.
Needless to say EBITDA is highlighted by the company but their profits are actually falling.
Interims HY23 (https://recastinvestor.substack.com/p/update-retail-food-group-rfgasx-1e2)
Current price 6.7 cents (AUD)
Quote from: Recaster on Mar 22, 2023, 03:02 AMA look at the interim accounts to 30.12.22.
Needless to say EBITDA is highlighted by the company but their profits are actually falling.
Interims HY23 (https://recastinvestor.substack.com/p/update-retail-food-group-rfgasx-1e2)
Current price 6.7 cents (AUD)
A few non accounts derived / positive RFG thoughts:
* Peter George has form in successful company turn arounds.
* Whispers of a Wendy's (https://www.afr.com/companies/retail/wendy-s-to-bring-hundreds-of-restaurants-to-australia-20230226-p5cnm1) takeover linger. Which maybe little more than a lotto ticket but one that came good (https://perfectdailygrind.com/2022/10/are-acquisitions-becoming-more-common-in-the-coffee-industry/) previously for the likes of Tim Horton, Green Mountain and Costa Coffee.
* CR is to "pursue core business and inorganic growth opportunities." The keyword here being "growth."
* A venerable player in WHSP on board as debt and share holder (8%.) This is a considerable vote of confidence from the Aussie institution.
* Successful $24.9 million share placement to sophisticated and
institutional investors at an offer price of $0.08 per share, paying over market price.