Peter did a great job at recapitalising the balance sheet at the expense of previous equity and debt holders.
The asset sale process was a disaster and shows these businesses are not worth much in the current environment.
As I have been saying for a long time, IMO an investment decision needs to me made on the underlying business. In particular the companies ability to open new stores and sign up new franchisee. I suspect nothing has changed in the 6mths to Dec 19 and a significant amount of stores have closed and next to no new ones opened.
The macro environment for food based franchisees is the toughest I have seen for many many years. With huge increases in raw material costs, mandatory wages increases and high rents, margins are very tight.
Reglatory risk is a concern if the government ever responses to the senate enquire into the franchise industry.
I must say, on my travels around regional and metro NSW and VIC I only saw a handful of RFG stores, only Donut King and Crust. Plus the amount of retail vacancies is not good either.
I also am a little surprised at the low volumes given the amount of shares on issue.
Overall, the next half yearly update will be interesting.
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Last
8.0¢ |
Change
0.001(1.27%) |
Mkt cap ! $199.1M |
Open | High | Low | Value | Volume |
7.8¢ | 8.0¢ | 7.8¢ | $147.4K | 1.882M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 315693 | 7.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
8.0¢ | 1752610 | 12 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 315693 | 0.078 |
6 | 817058 | 0.077 |
4 | 407760 | 0.076 |
11 | 511515 | 0.075 |
3 | 215466 | 0.074 |
Price($) | Vol. | No. |
---|---|---|
0.080 | 1752610 | 12 |
0.081 | 1148086 | 5 |
0.082 | 1612398 | 6 |
0.083 | 1509347 | 3 |
0.084 | 1091021 | 4 |
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