love the word concomitant... have already used it in correspondence.. cheers P
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love the word concomitant... have already used it in correspondence.. cheers P
Greg
Yes I haven't seen anything that has altered RBD's intrinsic value. Infact I toped up on recent sp weakness. You can chalk me down for that one P.
As an example of what might happen to change the thesis, RBD might decide that they're super-stars of fast food, and bring in another franchise, which will send me running screaming to the hills...
:-)
cheers
Greg
You make a coherent argument Belg. Perhaps you will be proved right. But you should bear in mind ingredient costs tend to be fixed in medium term contracts by RBD management, and are not affected by the 'spot' market.. Threre is little evidence that consumers are feeling more confident. My own expectation is that a double dip recession and a very slow grinding recovery is the most likely outcome. And there is absolutely no evidence that the taste of KFC is becoming less popular. Quite the opposite in fact. Consumption is rising faster than inflation.
So while you and Phaedrus may yet be proved right, I can't see a single piece of evidence in the market, bar a falling RBD share price (which has turned the corner and is recovering again anyway). Short term the market is a voting machine and share prices will be buffetted. Medium term, I can't see such scaremongering scenarios as gaining any traction. At a PE of 9 the market is already pricing in your scenario of doom, so worst case the RBD share price stays still. IMO the only way to go is up from here.
SNOOPY
I guess Mr Market worries too much.
You can have a punt on that at iPredict ..... currently about 50 cents to get $1 returnfor the December guarter GDP to be negative so a technical recession is reported (unless they revise Seot to a +ve number)
Odds were much longer a month or so ago .... about 10 cents for $1 return
You are right with your 'espectation' ... go on make a few bob out of it .... good fun
Hi guys,
How about this for a bit of fun?
I tried the following recipe during the weekend - A so called near exact tasting recipe of KFC made by an American guy, who used to be a former finance worker
http://homecooking.about.com/od/chic...lchicken46.htm
I was stunned, if you actually sit down and let the flavours linger in your mouth for a moment you could actually taste the KFC!
I pretty much ate a whole 15 piece pack to myself in the weekend LOL