buying RFG at $4.35, page-15

im sorry but this is nonsense

metrics always need to be considered in relation to where the consumption cycle is at - because retail consumption is extreme in its volatility

we've just been through the worst 3 years in last 20 for mall vendors in Australia

the reason you buy rfg to me is fairly straight forward - we;re aseeing a recovery of decent albeit not super exciting mall traffic - and theyve added the coffee extension growth leg which for me is what will make the stock outperform

this is a consumer staple - you will rarely see stellar shifts in profitability yoy.

but the baseline theyve set in mangaing in a mean economy really is excellent - and the debt theyve added has added future earnings with relatively little eps dilution\

debt is only bad at the wrong part of the cycle. thisis the thing grandpa never told us.

rfg has taken on debt at what i consider an excellent time - earnings are goign to grow but debt expense should continue to contract as we move further into the commodity recession