Ann: Trading Update, page-47

'So if I'm correct and using current SP of $2.42 it gives a fy18 PE of 8.07 and div yield 8.9% (net) and 12.7% (gross). Still good but a big change from indications provided not long ago by CEO. Perhaps i'm being too optimistic re divs as banks will lean on RFG. So they might go for 50% payout which is 15c ffr = 6.2% net and 8.86% gross. '

Geezus the SP moves so fast have to redo clacs every 20mins! So at $2.07

So if my guessimates above (30c EPS and div ratio of 50% as banks lean on RFG) are close then using current SP of $2.07 it gives a fy18 PE of 6.9 and div yield 7.25% (net) and 10.3% (gross). Am i being too optimistic? Time will tell.

Underlying fy17 EBITDA was 123.5m. reported EBITDA was 106.5m. We have only been given guidance re net NPAT for FY18 but I can't buy a share without having some estimate re future earnings so am punting on reported EBITDA of 85m for fy18. That gives EV ratio of 7.64x.

Everything has risk. Anyone buying at current levels eg below $2.10?

Some posters compare RFG to SGH and ABC Learning. I can't see why RFG will go belly-up considering majority of the business sectors are 'meeting management's expectations' i.e. similar to FY17 or even slightly better in some cases. Undoubtedly brand has taken a hit and writedowns are inevitable. But belly-up??