Very good write up. I do believe with the backing from Washington H Soul Pattinson, that will provide better transparency and governance that will keep the company in check. On top of that, SOL is able to provide some guidance that will help RFG to hit those objectives over a certain period of time. This could be one of the hidden gems that could be a 1 - 2x bagger stock if executed correctly. We will see a potential probability of seeing those legal charges to be resolved and hitting better margins during xmas period as part of the catalyst to bump the share price to go higher.
Thanks for the comment. Not sure who WHSP is but will investigate. There are many investors positioned currently for a 1 or 2 bag bounce. It had a run up earlier this year but came back down through the equity and debt capital raise process.
Given the history of the board members in SOL, they have usually a long term view on guiding businesses that they have invested. They have spun off a lot of good businesses and with the recent ones was the sale of API to Wesfarmers. SOL is considered as the Aussie little Berkshire Hathaway that follows the footsteps of warren buffet. RFG has cleared off their balance sheet with the $20 million loan and equity raised from SOL, which gives a fresh start to focus on growth and expansion. I would ignore with the short term downfall of their cashflow due to the weak consumer spending. As you said, will be on the watch list.
Very good write up. I do believe with the backing from Washington H Soul Pattinson, that will provide better transparency and governance that will keep the company in check. On top of that, SOL is able to provide some guidance that will help RFG to hit those objectives over a certain period of time. This could be one of the hidden gems that could be a 1 - 2x bagger stock if executed correctly. We will see a potential probability of seeing those legal charges to be resolved and hitting better margins during xmas period as part of the catalyst to bump the share price to go higher.
Thanks for the comment. Not sure who WHSP is but will investigate. There are many investors positioned currently for a 1 or 2 bag bounce. It had a run up earlier this year but came back down through the equity and debt capital raise process.
Watching with interest. Cheers.
Given the history of the board members in SOL, they have usually a long term view on guiding businesses that they have invested. They have spun off a lot of good businesses and with the recent ones was the sale of API to Wesfarmers. SOL is considered as the Aussie little Berkshire Hathaway that follows the footsteps of warren buffet. RFG has cleared off their balance sheet with the $20 million loan and equity raised from SOL, which gives a fresh start to focus on growth and expansion. I would ignore with the short term downfall of their cashflow due to the weak consumer spending. As you said, will be on the watch list.