re: p/e < 7x, div yield of 6.85% + earnings... Hi Investor007,...

re: p/e < 7x, div yield of 6.85% + earnings... Hi Investor007, nice write up, you've done your research, and I'm sold!!! however I already own stock. Going by past performance, this company appears to be going very well and I agree is undervalued. Its not a trader, its a buy and hold, and thats what I'll be doing.

I think bigbrownbox.com will be a winner providing marketing is done well and people get the name in their heads, I know I go to ebay for a whole heap of stuff these days, but you don't know the seller like you said. Its got many benefits.

As far as centrelink payments, its really got no chance of being cancelled, as peoples utility bills come out, unless they categorise RRA supplied good as luxuries instead of necessities (fridge, washing machine, etc), then they're pretty safe.

The other thing too is if the centrelink auto payments did stop for whatever reason and the direct debit out of normal savings accounts was used instead, I'm pretty sure this wouldn't change anything as most peoples savings accounts now have an overdraft facility, where if a direct debit comes out and you don't have enough in the account, it becomes a typical overdraft account, so RRA would still get its payment. I'm pretty sure its that simple.

RRA hasn't taken off during the rally of the last month or so, which is unfortunate. Being such a smaller stock, it seems to need good news to bring it to peoples attention. It dropped to around $0.65 after the DIV was paid, and is bouncing around 0.70 and 0.75 support and resistance, should break out within a month or so going by basic trendline, I also note that its not all that liquid, but good SP growth potential.