I agree that this can go to 3c due to tax loss selling, silliness, whatever I don’t know, but I will also ready to scoop up more along the way.However, I think once recover, RFG will go past 10c. Here is my take. Underlying NPAT this year is $24.6m (lowest of their range). Assume next year growth is flat (ATV up, SSS up, CC down). Next year you won’t have ACCC fines, minimal business restructure costs and no new litigation (please!), so that is EPS of ~c. 1c (share on issue 2.45bn over $24.6m NPAT).CFK P/E is about 15, DMP higher – let apply 20% hair cut on this so P/E of 12 because RFG is so hated– price of 12c. So for me, this is what it’s worth.They will also have more cashflow as they won’t have debt amortisation and no debt repayment, only interest, but they will have to fork out for more growth in US, etc so overall cashflow should allow them to do that.
Tell me why this stock is worth 5c – I am keen to hear.
RFG Price at posting:
5.0¢ Sentiment: None Disclosure: Held
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