Although i sold my RFG holdings several months ago i kept an alert re the SP. When i saw the collapse 3 days ago i assumed a ann by firm indicating a massive jump in bad debt, major mistake in accounts, or similar. Instead its a story about several franchisees who have lost the lot and felt RFG was not candid re the risks and not doing enough to market franchise or assit them. Whilst it def bad publicity for RFG the journos have focused on those in distress versus the many hundreds of success stories. Shorters climbed in, funds sold and SP has plunged. All this despite repeated assurance from MD that 'underlying profit for fy18 is expected to rise by 6%' Oversold?? I think it is. Will get more if it drops another 20c. Its a money maker despite some shops not making a profit. RFG clip the ticket on every coffee bean/donut sold.
RFG Price at posting:
$2.85 Sentiment: Hold Disclosure: Held
