If you add up the sum investors have put in over the past 3 years into RFG, the current market cap is less than 50% of that. And forget about past market cap - this was diluted to eternity in order to ensure that it survives. Yes many, and I mean many, people have lost money in this stock. So many funds have also lost. So they won't even touch this again until it can prove itself that it can be a profitable and sustainable business.
I am a recent investor so, with all respect to past holders, I look at RFG from the lense post the capitalisation in 2019.
I agree with everything you said about, but not agreeing with you about the current crop of management being the same. I don't think they are out to fleece franchisees, and certainly I don't think they set out to grow at all costs. They are more careful and try their best to look after franchisees.
However, whether or not they are competent and can execute their vision is the question mark. So far, they only just recently have their nose above the water, so I will give them more time, but so far, it is not impressive by any stretch of the imagination, but certainly a far cry from past management.
The thing I don't really like is them not having skin in the game. Most of them have shares are performance granted. The new CEO has 0 share! And they have recently expanded their BoD, a few more recruits at the top end, defintely going to burn money and we will have to see if they can bring in more money. So far 50/50 for me for this management team. One more year, I will be out.
RFG Price at posting:
5.3¢ Sentiment: None Disclosure: Held
