RFG has taken a beating these past few years and both shareholders and franchise holders have copped a lot of pain. From a high price of $7.56 in 2015, the stock price has fallen to barely 7c, with most fund managers taking a loss and bailing out. It's rare to see a 99 % fall in an ASX stock and what's better, this company seems to be making money once again, after a horrible few years.
Look closely at the register. In the last two years two really astute outfits have been buying shares and are now in the Top 20 shareholders list.
- Washington Soul Pattinson. Not known for being foolish, this is a really conservative company and it is the second oldest company on the ASX.
- Colin Street Value Fund. Feel free to google about this outfit, they are really loading up.
These guys know something we may not know. Furthermore - and this hearsay - it is my understanding that many mom and pop European-Australian coffee shop owners have been piling in. These folks are notoriously careful with their money and they know a thing or two about coffee, pizza and donuts.
I'm in with a few hundred thousand dollars. Of course, I'd prefer further weakness so I can load up more.
Do your own diligence. Ask yourself: are you smarter than the folks in the above two investment companies? Then make a decision.
RFG Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
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