RBD - Restaurant Brands

[Sauce]

5. Check that Snoopy is OK after the earthquake..

Not a peep from him since then, hope his family and abode are all good.

[percy]

5. Check that Snoopy is OK after the earthquake..

Not a peep from him since then, hope his family and abode are all good.

I note SNOOPY posted on NZ Farming Systems Uruguay thread yesterday at 1.41pm.

[h2so4]

Geez that 1/2 year went quick. Might have to check I'm looking at the right report.

I only had time for a quick glance at the report but it looks like a solid result yet again.

[Snoopy]

it looks like a solid result yet again.

SSD, $13.5m NPAT for the half year is earnings of 13.7cps. Only 7c of that being paid out as an interim dividend, so debt continues to be paid down rapidly. If RBD match the 8c divi final from last year, RBD is on a gross yield of 8.1% priced at $2.65. Divi of 15cps more than sustainable long term. The projected $24m full year profit puts RBD on a PE ratio of 10.7. RBD overvalued yet? Nope, looks like a very good yield play to me at $2.65. That fellow Creedy seems to be making a habit of underpromising and overdelivering. The worse the economy gets it seems, the better it is for RBD! Bring on the double dip recession!

SNOOPY

[h2so4]

RBD overvalued yet? Nope, looks like a very good yield play to me at $2.65.

You are rightrightrightrightright...............

I only see good stuff here.

[Phaedrus]

A glance at the chart tells us that, in spite of today's jump in price, the long RBD uptrend continues to decelerate. Such a price curve has the effect of triggering many premature "sell" signals when utilising "straightline" indicators such as trendlines. You can see that there are 6 trendlines marked in light green and all have given premature "sell" signals. Note, however, that none of these signals were ever confirmed by any of the other 8 indicators being used to monitor this stock. It is easy to see that none of these indicators are anywhere near triggering sell signals. To act on any single, unconfirmed signal is unwise.

Some people claim that the use of charts and TA leads to "overtrading". There is no sign of that here - in fact, it is the fundamentalists that were actively buying RBD all the way down - and have been selling on the way up! Now that is overtrading!

[macduffy]

Thanks, Phaedrus.

But what is the signoficance of the 7.6% trailing stop?

Is that a meaningful level or has it been retro-fitted to demonstrate the danger in setting a stop too tight? I must admit to a certain uneasiness when I set trailing stops - usually I work on the basis of the amount per share ( expressed then as a total dollar amount ) that I am prepared to lose, or forgo profit. Tends to often bump me out too soon!

[Phaedrus]

Indicators shown here have been set to the low of September 2009, as marked by the dotted grey line. The Trailing Stop was set at 7.6% because a value any smaller than that would have triggered earlier sell signals, flicking you out of this splendid uptrend - if you were foolish enough to act on isolated signals from a single indicator.

[moimoi]

Thank you Phaedrus.

[Snoopy]

Some people claim that the use of charts and TA leads to "overtrading". There is no sign of that here - in fact, it is the fundamentalists that were actively buying RBD all the way down - and have been selling on the way up! Now that is overtrading!

Selling on the way up, (my first sale of RBD shares since it listed in 1997 BTW), Phaedrus, has delivered me the cash I will need for a cash issue in a different share that has been well signalled. Others will have their own opinion as to whether one sale in 13 years is 'overtrading'. Despite this sale, my holding in RBD is still valued at more than twice my next most significant NZX investment. So I'm still getting more than my share of the benefit of the RBD uptrend.

SNOOPY