I thought I should start a thread on a long forgotten stock.
What are your views on the upcoming Radio Rentals results?
I believe they will show profit growth yet again. Dividend yield of close to 8% FF will be a benefit too.
I believe Big brown box.com.au is a complementary business to their exisitng rental business. They have a strong brand name and are now catering to the retail base who are prepared to buy goods upfront.
Hopefully RRA continues with their tradition of beating forecasts by delivering NPAT growth of more than 10% for FY'09. Gearing is really low too. Almost negligible. Interest cover is over 80x (no issues with balance sheet at all).
Let's see how the results pan out in a couple of days time. This is probably one small company with a solid business model which will beat expectations. Probably one of the few bright spots (profit increase) in a tough environment.
Perpetual is a major shareholder too. I think they own more than 14% of the company. Let's wait and see.
Anyway, Happy investing.
RRA
rr australia limited
