Retail Food Group (RFG)

finicky

finicky

Well-Known Member
Silver Stacker
Comment on this company occurred on the Telstra (TLS) thread.
Following it up, as Retail Food Group (RFG) is Motley Fool Australia's dividend stock pick for financial year 2014, and foreseeably retail investors are going to continue to love divvy yield stocks = capital gain as well? Ever had a Capers pizza? Not bad.
http://forums.silverstackers.com/topic-43355-telstra-tls.html

August 09 FNN
"The franchisor of Brumby's Bakeries Retail Food Group Limited (ASX:RFG) expects to show a 13 per cent rise in its full year net profit from last year's $30.3 million when it releases results on August 22."
http://www.finnewsnetwork.com.au/ar...il&utm_term=0_ebb2490e1c-edfb52130a-137602186

9 August 2013
ANTICIPATED FY13 RESULT
http://www.stocknessmonster.com/news-item?S=RFG&E=ASX&N=748769
 
Yes after first post today I looked a bit more at it. FY13 NPAT is being compared to NPAT in FY12 as up 13%. However this result is diluted on an earnings per share (eps) basis by the capital raisings done in October 2012 which boosted the number of shares on issue from about 108m to about 130m shares.

Also how much NPAT growth is due to earnings contribution from the acquisitions during FY13 of 'Coffee Guy and 'Crust Gourmet Pizza Bars', those acquisitions being the purpose of the large capital raisings at $2.85 in October 2012? The announcement refers to "Core NPAT", so maybe they are making an adjustment for the new earnings sources compared to FY12 - I don't know.

The expected core NPAT result was announced prior to trading on Friday and the price opened much higher, then plunged in the first 2 hours and made no recovery during the rest of trading; so the market was expecting more growth perhaps?
If "core NPAT" isn't much different to reported NPAT, I get actual P/E as 15.8 which doesn't look cheap on the basis of 13% growth for this past year - but what growth is to be expected for FY14, maybe more?

Skaffold hasn't caught up with new information yet - will wait for formal results anyway, and then there'll still be a delay. But Skaffold has been saying that the stock is overvalued not just on this year's expected earnings but going out to FY14 and FY15 as well. Has been assigning intrinsic value of only $2.88 and $3.16 for FY14, FY15
 
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