Although the market may not initially like the large placement of 5.2 million additional shares, I see it as a positive given RFG's excellent history of capital investment for good shareholder returns. I much prefer a profitable company which is able to invest for growth than a profitable company which struggles to find any investment for growth and therefore gives out all its profits in dividends. Some possible areas for new investment:
* Setting up additional coffee roasting and distribution facilities in Asia and USA;
* Expanding the marketing of the commercial coffee pod machines.
There are undoubtedly many more such investment opportunities they have in mind when raising the additional $35.6M.
RFG Price at posting:
$7.26 Sentiment: Buy Disclosure: Held
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