1MC 0.00% 4.3¢ morella corporation limited

Investor Presentation, page-507

  1. 91 Posts.
    lightbulb Created with Sketch. 52
    Agreed..

    Two memorable Hot buy recommendations I can recall in the last few years from the Fool have been Slater and Gordon

    This was December 2014

    "The law firm company Slater & Gordon Limited (ASX: SGH) is another interesting and somewhat surprisingly good valued stock. It has been steadily acquiring competing law firms in both Australia and the UK and growing its network. FY 2014 was a particularly strong year with earnings up 32%.
    As the new law practices are integrated into the business, more organic growth will come. The stock trades at 19 times earnings, which is at the very high end of its past PE range. Analysts are expecting earnings growth over the next several years to be around 14% annually, so with the 1.4% yield, it isn’t too much of a premium to pay for long-term growth. The quality of the company will attract investors again soon enough, so have a stake in this stock as well."

    The Share consolidation 1 for 100 has affected the pricing but at the time they were around $571 and now sit at $2.50 ( Thats also accounts for a 16% rise today btw)

    And Retail Food Group
    June 23, 2016

    But of all these dividend shares I would pick Retail Food Group Limited (ASX: RFG) over them every time. Retail Food Group is the master franchisor of a collection of popular brands such as Gloria Jean’s, Donut King and Michel’s Patisserie. According to CommSec, its shares are estimated to provide a fully franked 5.5% dividend in FY 2016.
    If the company does pay out the expected 30 cents per share dividend it would mean 10 consecutive years of dividend increases. Perhaps the best part is that I believe its strong growth prospects mean this outstanding run can continue for many years to come.
    Across its network of 2,509 stores it currently serves 140-million customers per year. This strong presence within a growing Australian coffee market estimated by management to be worth $15 billion per year by 2020 is one reason why I think Retail Food Group is a great investment.
    But another reason is its overseas expansion plans. This ambitious company currently has its eyes fixed on the Chinese market through its joint venture with Chinese restaurant group GouBuLi. In a recent presentation management stated that it expects its international segment to provide 25% of total EBITDA by FY 2018, up from 16.8% as of its FY 2016 half-year results.
    The Chinese market is not only huge, but still exhibiting rapid growth. According to the Wall Street Journal, coffee consumption is expected to grow by 18% per year in China through to 2019. If the company can take even a small slice of this market it will no doubt make a big impression on its bottom line.
    In the last 10 years the company has increased its earnings by an average of 16% per year. This year looks to be no different after management maintained its full year guidance of net profit after tax growth of 20% year-on-year earlier this month. If it can achieve the targeted level of success in its international segment then I see no reason why this strong performance cannot continue for a number of years.
    So at a time when there are fears about the banks cutting their dividends, I believe an investment in Retail Food Group will prove to be a great one. Its shares are changing hands at a lowly 13x estimated FY 2016 earnings, which makes it great value in my opinion.
    Finally, Retail Food Group might not be the only dividend share that is a better option than the banks right now. In fact, I would recommend those looking for income to consider taking a look at these big dividend shares as alternatives to the banks.

    Price at posting $5.53 and today $0.30
 
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