RBD - Restaurant Brands

[BRICKS]

SNOOPY, There is none as blind as those that refuse to see. You have a lot of learning to do my friend, open your mind to reality before you go under. Why you persist in your fundamental stupidity blind to the reality of an ever changing market is beyond me. If your analysis was worth anything surely you should have got rid of this dog whose share price is still playing catch up over the last decade. Macdunk

WELL it goes like this $309 million revenue a 7 cent DIV and rising profits down the TRACK..

Some DOG..

[Snoopy]

Current reality is that this stock has been one of the strongest performers on the NZ market!

Restaurant Brands result out today. Usually it is a question of 'buy the rumour sell the fact' with these upbeat profit results. Yet with Restaurant Brands the share price continues to climb on the announcement!

The dividend increase in a climate of dividend cuts was I think the unexpected bonus. On an ongoing basis an annual dividend of 7cps represents a gross yield of 12% based on an RBD share price of 87c. That makes the share still cheap, or does it?

Both the Starbucks and Pizza Hut results were worse than I expected. Also no detail about this deal with YUM regarding the future of Pizza Hut. There has been a full year impairment write off of Pizza Hut goodwill totalling $3.7m. But that still leaves $16.4m of PH goodwill on the books. That doesn't gel with a business unit that I have calculated is losing nearly $9m per year, once all of those extraneous overheads are apportioned.

As for 'evaluating some (Pizza Hut store) sales to independent franchisees', does that sound realistic in this business climate? Master franchiser YUM are known for playing hard ball, so how well will tough talking Ted and 'Rocky' Russel stand up to them? According to today's release, in a month we will know the result of this bout.

Staying on the sidelines for now, but may be back with my cheque book in a month or so.

SNOOPY

discl: hold RBD

[BRICKS]

WE will call it a draw we posted at the exact time, Right a 12% yield try getting that at a bank or finance company just before it goes broke but not RBD people will not stop eating
and drinking coffee even if its only to wash the chicken down the way a head is clear so if the mob don't buy that's there fault as long as they keep sending the div`s the better..

Don'T forget you cant BUY this type of stock in Australia this a NZ special..

[Snoopy]

Right a 12% yield try getting that at a bank or finance company just before it goes broke but not RBD people will not stop eating and drinking coffee even if its only to wash the chicken down

Bad news Bricks. The yield just dropped to 11%.

The good news is that is because the share price is now 91c! I always expected RBD to 'come right', but not as fast as this. At 91c the market capitalisation of the company is now $88.4m.

Question: How high does the market cap have to go before RBD is once again back into the NZX50? At that point we should see another round of buying, this time from the index fund managers.

SNOOPY

[STRAT]

thinking of rbd, whatever happened to bongo 66?
sure hope he didn't blow up and bust with frustration at his beloved rbd...

and hes baaaack


http://www.*************forum.com/

http://www.*************nz.blogspot.com/

[Deev8]

If your analysis was worth anything surely you should have got rid of this dog

Is Macdunk advocating the sale of an uptrending share? On of the few uptrending shares in the NZ market.

[Phaedrus]

Duncan, once a dog doesn't necessarily mean always a dog! Circumstances change and no uptrend or downtrend lasts forever. RBD's recent enormous volume spike gave us all a "heads-up" for this stock. Some would have bought RBD on that alone, although it is not good practice to act on the basis of a single indicator. Not long after, however, the former resistance at 69 cents was overcome and RBD was in an uptrend. Then came the break of a trendline that had been unbroken for years. The long OBV trendline was next to be broken and a day later longterm oscillators fired off "Buy" signals - again, for the first time in literally years.

There is money to be made in this market, Dunc. Some really good short-term opportunities have been presenting themselves - regardless of what the long-term outlook may be. With due caution and a defined exit strategy there is no reason not to be dabbling. There is such a thing as being too cautious!

[BRICKS]

THAT large spike was the AMP 9% and as yet not been answered to the market what a
situation no one except the owners , KNOWS so why don't the PUBLIC..

[Nitaa]

THAT large spike was the AMP 9% and as yet not been answered to the market what a
situation no one except the owners , KNOWS so why don't the PUBLIC..

Huh... explain?

[BRICKS]

Huh... explain?

JUST try harder to keep up..