Forum Archive Index - April 2002

["geoff_julie" <gk_jawalker@paradise.net.nz>]

Snoopy

 

great posting on RBD!

 

Have to agree with you, RBD are my all time favourite stock that barely rates a mention as it is not perceived as a "glamour stock" by brokers or Joe-average punter.  Who wants to own a boring old pizza / chicken / coffee company?  IMO, what else could one ask for in a stock;

 

good management,

excellent cashflow,

low debt (dramatically lowered by property sales at the peak of the market as you mentioned),

large shareholder in AMP (who no doubt have been instrumental in some of their recent decisions),

growth via Starbucks and now Pizza Hut in Ozzy (picked up the outlets for a song),

excellent dividend,

non cyclical, stable earnings.

 

 

I have also done very well out of them constantly remind myself not to fall into the trader or chartist trap - made a profit, price has dropped 5 cents so I have to bail out and buy back at a lower price, which of course has not happened to often!  Fundamentals are the only thing that truly matters when your investing, not candlesticks, a line on a piece of chart paper, or a hunch.

 

Finally, RBD seems to fit in well with Buffett criteria for selecting a company to invest in.  It has a consumer monopoly in chicken, duopoly in pizza, good mgmt, low PE, and growth being actively pursued.

 

 

Geoff

 

disclaimer    have owned RBD shares for over 6 months, no intention to sell.