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Hi davidrob and ohmyme,
RFG buy side looks thin again, might be a chance to pick up some cheapo stocks.
Did you guys read those articles I posted above? Were you aware of these factors? Perhaps that's why the share price isn't taking off... oh well, time will tell.
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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Legal stoushes are a reasonably common occurance in the franchise business. The number of disagreements in this instance is not especially material.
The Juice business I think took everyone by surprise. First by its rapid expansion and then by it's rapid contraction as operators discovered how easy it is to emulate. While RFG were perhaps silly to try their hand so late, they followed quite a bit of "smart money" in doing so. I don't have any insight into the disagreements with former franchise holders but would be surprised if RFG has a contractual liability and suspect judgement will be required to clarify a moral one.
Donut King has been a long term performer. Joint venture expansion into Asian markets would seem the most likely "winning" combination to add some growth "gloss" to the share price. The existing mature business in Australasia still has incremental growth prospects in any case. Growth by aquisitions will either be expensive or risky and new concepts are a lottery. I would be hoping they don't get too innovative.
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Member
Hi guys,
great to be back from a month long holiday and find another great idea from the brains trust at sharetrader.
RFG seems a very interesting prospect.
One question: how much room for expansion is there? They already seem to have a lot of donut stores operating.
CF Halebop's comment about Asian expansion, the western-style bakery/donut shops in China were best described as deserted. McDonalds, KFC, and Pizza Hut, however, were humming (Pizza Hut being the height of fine dining in China).
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Member
quote: Originally posted by OneUp
One question: how much room for expansion is there? They already seem to have a lot of donut stores operating.
500 stores possible. Plus expansion in NZ (not too many donut stores here).
Looks like insto buying this week.
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Member
BTW Robbo, what would you make of Dunkin' Donuts as a competitor to Donut King?
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Member
quote: Originally posted by davidrob
Also, partly ALSO in relation to first part of your querry One Up: Teaser Question for ya, --- What is the Sustainable Competitive Advantage that Donut King Has?
A bit hard to answer that question without checking out their systems and products first hand.
But from what I can see, their donuts look better than Dunkin Donuts, which in NZ atleast doesn't even have a real chocolate (or choc with nuts) alternative!! I mean Donut King can bury 'em.
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Hi robbo,
I owe you a doughnut and a coffee mate[8D] I'm happy holding RFG, let's see how soon it will hit 100 million market cap!
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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