RBD - Restaurant Brands NZX Monthly Chart
Blast from the past, this was the second stock I bought back in 2005...
I'm from NZ so know the company, they own KFC, Pizza Hut, Taco Bell and Carls Junior so compete in the fast food industry, and kiwis love their fast food!!
Fundamentally this clearly has a story behind the fall - but I think it has overshot to the downside with basics like PE it is currently around 10 but the market is around 18
Also the revenue has been increasing steadily with EBITDA margin % sitting steady at 16-18% so whatever the reason for the fall - i think fundamentally the business will continue to create cashflow and be profitable,
The one downside is that they've financed growth with debt, and the increase in earnings is not in line with the growth in debt, which may have been the catalyst
With a current ratio of 0.43 there needs to be a rationalisation/ restructure to balance this out so it's going to be a turnaround story becuase with a De ration of 363% thats simply too high as simple interest rate increases could bury them...
Either way, technically I think it may bounce from around here, and I'm looking to buy some shares for my children... I think it is possible to see the price increase by 50-120% in the next year... and then possibly sell out all or possibly half,,, and keep the other 50% for free...
A lot of fibonacci levels showing up here as well as some elliot wave theory, I may dig in closer to see if there are any clear entries of interest or just simply buy as this is a long term play
I'm from NZ so know the company, they own KFC, Pizza Hut, Taco Bell and Carls Junior so compete in the fast food industry, and kiwis love their fast food!!
Fundamentally this clearly has a story behind the fall - but I think it has overshot to the downside with basics like PE it is currently around 10 but the market is around 18
Also the revenue has been increasing steadily with EBITDA margin % sitting steady at 16-18% so whatever the reason for the fall - i think fundamentally the business will continue to create cashflow and be profitable,
The one downside is that they've financed growth with debt, and the increase in earnings is not in line with the growth in debt, which may have been the catalyst
With a current ratio of 0.43 there needs to be a rationalisation/ restructure to balance this out so it's going to be a turnaround story becuase with a De ration of 363% thats simply too high as simple interest rate increases could bury them...
Either way, technically I think it may bounce from around here, and I'm looking to buy some shares for my children... I think it is possible to see the price increase by 50-120% in the next year... and then possibly sell out all or possibly half,,, and keep the other 50% for free...
A lot of fibonacci levels showing up here as well as some elliot wave theory, I may dig in closer to see if there are any clear entries of interest or just simply buy as this is a long term play