The abs figures out today say cafe & restaurant spending was 'up strongly' in the month of August. This was part of the sixth consecutive rise in consumer spending.
RFG has not had much attention lately and the sp had a slide recently. There was a large sale went through after close today that caught a low ball offer of mine to average down my holding. It hasn't been this low since May this year. I suspect it may have been a director who has recently converted some options taking some cash so he can buy some shares in a REE play.
Morningstar has started coverage and has a BUY on it below $2.70 and fair value at $3.30. It says the attraction is for capital growth and dividends. There is alot of competition for take away foods but demand for low value transactions has proven resilient, borne out by the abs figures. Management are experienced with growth by aquisitions.
also hold some promising REE plays LYC,GBE,AIW
RFG Price at posting:
$2.32 Sentiment: LT Buy Disclosure: Held
