I think there is still some free-fall for RFG before we will see potential. They will need to deal with the inevitable fallout from their disgruntled franchisees before they get anywhere. There will be bad press and sell offs.
I'll buy in when it starts to drop below 85c. I see it happening in the next two weeks or so.
In the mean time, I'm trying to quantify what they have assigned to 'intangibles'. They can't go and say the IP for Donut King, for example, has $200million in value when the business itself didn't even generate that much revenue; and using goodwill as a value is ridiculous when, again, we look at revenue.
If there are 580 odd million dollars in 'intangibles', then I believe they need to be listed at least some where.
The debt isn't overly worrying, considering there is cash in the bank, not a lot - but it is there, and there are still EBIT contributions.
This'll be a wait and see.
RFG Price at posting:
$1.14 Sentiment: Buy Disclosure: Not Held
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