Market cap is only one thing they look at, they also look at liquidity, trading volume and share price stability. For example AVB is a company i hold which is not in the asx300 but has a market cap around 250 million, so your argument based on market cap is flawed. However the current issues the company is having may deteriorate the share price further and they could find themselves out at a later time.
Fairfax not only ones in media voicing concerns. A couple of brokers the other day on sky business mentioned that this company was extremely hard on their franchisees, taking 9 per cent off the top, so it doesn't surprise me that there are reports on underpaid employees. Suggest holders proceed with caution. Personally looks too risky and strongly believe you wont grow the business if your franchisees are financially under the pump.
I speak with some knowledge ( 20 years of my working life has been in retail).
Christopher
RFG Price at posting:
$2.65 Sentiment: None Disclosure: Not Held
