RBD - Restaurant Brands

[winner69]

I think just over 280 is the all time high


Getting up to that mark again ..... 250 odd now .......260 next week or so .....and then an all time high

Not going to bad is this dog .....almost a greyhound

[KJ]

Yes..it has gone well.

HY result will be interesting...should be out next week I think.Perhaps high div has helped to push price up.

[winner69]

Maybe 3 bucks by end of month .....bongo would be pleased

[winner69]

I think just over 280 is the all time high


Getting up to that mark again ..... 250 odd now .......260 next week or so .....and then an all time high

Not going to bad is this dog .....almost a greyhound

That was a couple of months ago

All time high comes and nobody says a word ....a bit boring is RBD isn't it

[voltage]

thanks SNOOPY are there any other global giant companies one should have in a long term hold portfolio. I have a number of UK investment trusts but like to now focus on direct global giant share holdings

[Snoopy]

thanks SNOOPY are there any other global giant companies one should have in a long term hold portfolio.

If you are subject to a 1.5% overseas investment wealth tax (thanks to the FIF regime) plus a 1% management fee from your broker for holding a foreign share via a portfolio management entity, that means your overseas investment must outperform your NZ/Oz investment by 2.5% per year just to be an an even footing (after tax). I don't pay an ongoing management fee on my YUM shares because I hold them directly. If I want to sell quickly, I might have some problems though. It is pretty difficult to find an overseas share with as good a prospects as YUM. I invest in minerals by holding BHP and having a finger in one of those big four Ozzie banks looks like a no brainer. Otherwise you can invest overseas by investing in NZ companies that predominantly trade overseas.

SNOOPY

[voltage]

thanks snoopy, i hold some overseas shares via custodial which cost $50 each per year. If you can find companies that pay a high dividend, greater than 5%, this will limit FIF.

[winner69]

I see PWC currently have WACC for RBD at 7.6%

I was using a higher value when I mentioned a $3 shareprice earlier .... at a 8% cost of capital you get a valuation of $3.40-$3.50

Obviously the market (gurus) have doubts about these record margins being maintained into the future

[h2so4]

I see PWC currently have WACC for RBD at 7.6%

I was using a higher value when I mentioned a $3 shareprice earlier .... at a 8% cost of capital you get a valuation of $3.40-$3.50

Obviously the market (gurus) have doubts about these record margins being maintained into the future

Don't these statements contradict each other?

I'm confused here winner.

[winner69]

Don't these statements contradict each other?

I'm confused here winner.

No

The 'valuation' of $3.40-$3.50 based on forecasted 2011 earnings whcih implies that the high margins (relative to previous years) will continue forever

If margins are more 'normal' (historical levels) than the 'valuation' falls .... and as the market price is $2.30-$2.40 the market probably not convinced the current high margins will continue.