(RFG) Donut King ++ BB's Coffee

[mark100]

Hi Bobbyvee,

My initial thoughts were that not owning any stores is better. Less capital tied up, lower capex etc

And as the market has just seen, Dominoes aren't perfect either!

chers

[Bobbyvee]

Agreed - and also less direct staff to worry about.

Further if you are running a franchise business why complicate it by owning stores youself - surely that's not what franchising is about.

[Halebop]

At a strategic level they get far better insight from information systems than from owning a few dozen stores. The sort of pay a store manager might earn doesn't really buy scintillating industry insight and any other oversight such as areas managers or business analysts could review an independant store just as efficiently (or inefficiently) as a company owned one.

Franchise systems tend to keep the best stores when they opt for ownership which can actually skew decision making because their economics can be very different from average. A no capital down , no store owned approach is optimal from a return on equity and ability to fund expansion stance. While absolute profits suffer by sharing them with independant owner/operators, the pie is baked much bigger and quicker than otherwise possible. Let them buy stores when they run out of other expansion opportunities.

[robbo]

Retail Food Grp.

Hi guy,

Here's my take....

Basically RFG mgt-- ....are a combination of:

'retail is detailers' -- ie: folk who have successfully extracted Value-- and have built these sort of business operations from ground up--AND Lawyers and Accountants--who specialize -- not in Donuts or Coffees-- or Pizzas .....or in Coca Cola-- but in what--[?][?]

The clue is in their tag line to their name-- they are experts in developing and extracting max value-- in... "franchise systems"....

That is thier core Competitive Advantage.

All else is peripheral. Got it...?? [?]

All else is extranaeous.... ie: Not all that relevant.

Again-- Do please .... read the Reports, read read read....and read the information in its context and ....'holistically' -- guys--.....

.... .... You guys ought to know me..... by now.....-- I am not just saying this..... 'to ramp'-- I am saying this..... coz sometimes ....you guys ...... seem to .... miss the 'wood from the trees'....

Now I have..... a few jaundiced theories for the reason for this.... [8D]....

... Either: --

(1) You sit there; watching ....'the bloody ticker'--- all day--which if you do .....I recommend..... you do what my good girl-friend[8D]; English cover-girl model ....Kate Moss does.... -- and instead be more productive.... and snort cocaine all day instead ....

-- As imo, it is far less addictive; and less stupid...than watching the silly ticker....

(2) When you do bother to 'read'-- the various Reports in detail -- you SKIM-- and you read too 'historically'-- and/or ....'out of context'--- and/or ....not within the totality of the situation...or in the parallel context of the preceding Reports and the other available data ..... 'as a package'.... [?][?][?]

(3) So, from point (2) ... understand what the opinion of Brokers is worth..??[?]

Here is my estimation of their overall worth to us Investors:

The fungal mushroom..... that I just pis%$#Sed on .... and then squashed with my Gum-boots -- is worth a whole lot more-- than any brokers opinion or Report or self-agenda selfish non private client interest driven superficial air head opinion.... of a silly air head Broker....

I mean look waht the Merrill Lynch guys were doing to their Clients in the States the other month---!! --yuk-- [}][}]

(4) So from points (2) and (3) ,.....what do Brokers really want...??

..... In a few words, imo.... .....

Preference and Informational Advantage....

And the ability, imo, to a lesser or greater degree, be allowed .....to be put into some form of:.... 'market cornering', 'market maker' position.... in a stock-- to churn for Broker fees.... Why??

Coz that is how they (Brokers) make a living !!...

Then they 'cover the stock'-- and subtly ramp the crap out of it--

(5) Conclusion.

RFG --- imo--- have probably-- is my assesment; not ....'played the game'-- ie: the typical --- 'micro cap stock brokers game'....etc etc etc... and instead have been very Guilty..

errrr, Robbo, RFG Guilty...??--Guilty of what Cardinal Sin...[:0]?[?]

..... Guilty of .... 'Being Boring'.

Guilty of not wasting money on Consultant fees.

Guilty of not wasting money on Brokers Fees.

And Mgt Fees....

And Guilty ....of only playimg.... strictly ....by the rules, and doing the minimal amount outside .....of actually Running the business for a profit.....

... That simple....

And being shop-kepers, accountants and lawyers-- they are interested in 2 Main issues.

(1) Running a meticulously tight ship.

(2) Being judicious legally in only saying what needs to be said.
(3) Running a tight Franhisee System business Operation.

[b][i]>>> ... A Disciplined

[winner69]

Those pink racecars look really cool man
http://www.gtpracing.com.au/racingGa...nCreek&Round=3

Keeping these running along with naming rights of a whole series must use up a fair chunk of the marketing money

But then Donut King has 98% recall or something according to the justification for this 'innovative marketing spend'

And that man Alford and his mates get around a bit .... 24 hour races in Europe .... Dubai ..... good if you can get it .... maybe global expansion on the cards .... but then Donuts weren't sponsoring those sort of trips

Corporate Governance perfectly OK in this respect .... interest in Alfords hobby disclosed .... except for the amount

[OneUp]

quote:Originally posted by davidrob
(1) You sit there; watching ....'the bloody ticker'--- all day--which if you do .....I recommend..... you do what my good girl-friend[8D]; English cover-girl model ....Kate Moss does.... -- and instead be more productive.... and snort cocaine all day instead ....

-- As imo, it is far less addictive; and less stupid...than watching the silly ticker....

(3) So, from point (2) ... understand what the opinion of Brokers is worth..??[?]

Here is my estimation of their overall worth to us Investors:

The fungal mushroom..... that I just pis%$#Sed on .... and then squashed with my Gum-boots -- is worth a whole lot more-- than any brokers opinion or Report or self-agenda selfish non private client interest driven superficial air head opinion.... of a silly air head Broker....

Robbo, the Kate Moss bit cracked me up .

Great post, and have a great weekend.

[robbo]

RFG

Yeah you too One UP...

Was feeling a bit creative--- and that 'metaphor' re the bodilly response .....towards.... the poor 'ol-- fungal mushroom -- and then squashing it "with my gumboots"-- just hit me when I was reading .....some old Footrot Flats Cartoon books ..... which I absolutely adore... actually !!

Have-a-good-weekend to One Up ...

Robbo

[mark100]

Robbo,

Considering Wilsons earned around $1.4m in underwriting fees from RFG I would have thought that they had lined the pocket of the broker quite well. That is why I thought it interesting that they had subsequently decided not to provide research on RFG.

Also as I said in my post, the issues which I raised are mostly a matter of personal opinion by the analyst. However I do find it strange that you regard the opinion of an analyst as lower than a fungal mushroom that you've p!ssed on but on the ISS thread you have been claiming that analyst presentations will help get the price moving.

And for the record I like the RFG business model provided they can keep it simple and not get carried away with dud acquisitions etc

[robbo]

RFG....

Mark, just being colorful & metaphoric....[:o)]

....and yes--....brokers.... 'can get the price moving'-- if othere stars are in alignment-- which does not change my view ....of their opinions/shallow and usually completely unoriginal and uninspiring analysis-- as the two subjects....

(1) Their analysis being judged on basis of: (a) insightfulness-- and (b) objectivity and (c) in interests of Investors.. and

(2) The igniting of the share price--

....are hetrogeneous and not homogeneous....issues... imo...

But Mark,

....Being a 'contrarian' and 'primary documents only sorta independent wally'-- who likes picking mushrooms-- and distrusts Brokers.... with a fervent intensity--...

Means, I am admitedly 'one eyed, biassed. and prejudiced....[}]

Hey Mark, --->>>>--- ever read the recent story about Enron which had a very good wrap from none other than Mr W. Buffett, called:

"The Smartest Guys in the Room'-- ??[?][?]?? ...

... Great read -- this one-- 'The Smartest Guys In The Room'!!

Now here.....imo, is a Classic Case Study.... on Wall Street Brokers and Analysts-- from Citigroup to Merrils to Morgans etc etc... and again with World-Com.... -- and the list goes on, even with Martha Stewarts Company etc etc... that all rams home the point-I am maing, and why I distrust em with a fervent intensity...

Why Robbo...?? Answer: Coz their track record stinks....

- Wall Street and Capitalist history demonstrate-- repeatedly and refularly-- that Brokers are driven often by Greed and Fees....--


Greed and Fees, Fees and Greed... and not the Investor.

And also become all to easilly a part of the mindless 'herd on the hill"---- --driven by Consensus-- and rarely have clear independent 'Private Client driven' Insight -- and ethics-- that makes the Private investor wealthy and Rich....

Instead they (brokers)-- are all about--- churn and trade,--- churn and trade, ---churn and trade....---which I find a very rational thing to do-- if you like losing money....

So consequently Mark, I never read Newsletters, Brokers Reports, so called Analysts Reports or anything else of that nature. ..... Never ever ever.

And guess what...?

By just being resolutely independent, errr and.... hopefully sometimes .....clear minded-- [:o)][:I] and very boring....[:I]--

I turned a very small $10K only 5.5 years ago-- into enough to Retire on ....and not have to work and live 'okay'...[:I][:I]-- at 39-40 years of age.....

And actually Mark; I admit--- I did get stung...not once.... but twice... [}][}][:0]

I had turned..... the super modest $10K into $20 k on my own... and then was silly and listened to ....--- two (2) seperate brokers (from 2 seperate Firms)-- so called-- 'professional advice'-- actually 2 brokers... and guess what Mark, [?][?]-- was soon back down.... to only ....$13 K... [B)][B)]

So I soon started to not answer their phone calls or listen to their ideas or recommendations... thank goodness...

And now guess what. ..?

errrr....

...........Well let's just say.... that fortunately.... I am now past the $20K post.... errr.... again.... [:I]

... So Mark... you are probably right...

I AM biassed due to my bad experiences....

But I must also say-- that I have compared my own situation with others ....who started out with a lot more money than me-- a lot more money !!-- -- try $100 and $200K plus-- professional types-- lawyers, accountants, doctors etc, etc...and guess what[?]-[?]- they are not now....that far ahead....and some of them ....are BEHIND !! -- from whence they started...[:0]

And for my silly old self... since I started using my own Pub Dart Board-- I reckon .... personally anyway-- that....I am better off without Brokers....

.... Mark, one last Final thought...

I have three other people-- one here in Brisbane, and t

[winner69]

No real buyers today?