MFB - My Food Bag

[winner (n)]

Cecilia on acquisition trail. .her Tend just acquired The Doctors from GXH for $270m


Now that out of way let's get back to My Food Bag she says

[winner (n)]

Basil - You up to becoming a Director

Easy peasy job for a semiretired professional gentleman

Sure many here would vote for you ... I'll sort out support from Waterman guys


https://announcements.nzx.com/attachment/469735.pdf

[Auto Rower]

Definitely your best suggestion yet winner.
 Gets my vote ,

[Basil]

It would be fun rubbing shoulders with Tony Carter, such a likeable guy but I think the board are doing a very good job.   
Not only have they basically completed their goal of repaying all debt which builds far more resilience into the business model, (long term success is always a key governance goal), they've been part of helping grow the business a bit in a very tough economy with new products like My Food Bag Shop and now trying vending machines.  While doing that they've also nearly met my request for 2 cps fully imputed dividends in FY26. (1.9 cps)  From a governance operating perspective that's a solid 8.5 out of 10 in my view.  They lose 1.5 points for the overly generous senior management incentive scheme.

Additionally they've hired external consultants, (Cameron Partners) for an external review which potentially is  not in the directors personal best financial interests if it gets taken over.  Quite impressive really, not many boards are prepared to do that and put shareholders interests ahead of their own.    That part of their role gets a 10/10 from me.  I might even give our mate Tony a pat on the back at this years annual meeting.  I seriously doubt with my complete lack of any food industry experience I could add any value.

[winner (n)]

Share price down last week. .close at 28 cents. Not much volune though

Hope love comes back this week and we see 30 cents plus again.

Wonder if Cecelia has been distracted with the Tend / Doctors thing? Not that's over she might get back to working on the MFB 'strategic review'

[winner (n)]

Share price hanging in there --- still at 28 cents

Suppose we have to hope the K-shaped economy doesn't turn pear shaped and number of households who can afford My food Bag stuff falls away


Probably no more updates until ASM in August

Maybe a takeover offer at 40 cents would be a good outcome

[Basil]

Retail sales data in May which was quite buoyant suggests people have adapted to higher fuel prices.

Maybe cheaper to get Bargain Box delivered than all the hassel, time and higher fuel costs to do the shopping yourself.

I hope it stays listed because this could kick out huge fully imputed dividend feeds going forward.

[winner (n)]

Mortgage debt is still piling up .....last RBNZ data said ~6% per year. Even though there may have been some interest rate relief monthly interest payable has only inched down a bit and is at relatively high levels.

I'd say that things are pointing to less households being able to 'afford' meal kits n the medium if not forever

Important for MY Food Bag to keep there loyal customers satisfied and on side

[Basil]

Which they seem to be doing very successfully.

[Auto Rower]

Share price hanging in there --- still at 28 cents

Suppose we have to hope the K-shaped economy doesn't turn pear shaped and number of households who can afford My food Bag stuff falls away


Probably no more updates until ASM in August

Maybe a takeover offer at 40 cents would be a good outcome

NO  wash your mouth out winner no one would say yes to that measly offer  future dividends are going to be ginormous

[Basil]

3.5 cps annual dividends fully imputed suggests on a dividend discount model at 9% required rate of return gross, fair value is 54 cents.

Anything less than 50 cents, them em they're dreaming.

[winner (n)]

3.5 cps annual dividends fully imputed suggests on a dividend discount model at 9% required rate of return gross, fair value is 54 cents.

Anything less than 50 cents, them em they're dreaming.

Seems market pricing implies no dividend growth if rate of return is 9%

Is the market 'weighing' (ie that's a fair assumption) or 'voting' (and pretty dismal)