Rfg future?, page-115

You're comments on SGH demostrate a lot of misunderstanding. There was a 100 to 1 consolidation of existing shareholders. This resulted in around 360m shares turning into 3.6m. They then added around 70m shares which were given to the senior lenders. Result was 95% dillution AND loss of UK operations.

I sold before the recapitalisation @ 17.5c. After a lot of averaging down I had around 100k shares by that point. If I stayed in there my 100k would have consolodated to 1k shares or around $3,300 value today. When I sold I recieved $17,500. Understand?

Anyway, I would be very careful and this overseas expansion talk in misleading. Look at DMP and see the royalities they pay relative to the size of their master franchise operations. DMP still make very good money, after their own suffering franchisees, and the lion share goes to them. Rfg selling master franchises won't have a major economic benefit as if they'd opened 100's of new stores themselves. Those networks will also take some time to build out before recurrimg royalties are paid.

When I say discounted I mean low. The price will be low because of the elevated risks, write downs, falling sales, major investment soaking up cash, no dividend and sizable debt.