The China Syndrome

The recent slide in global markets could be the cause of alarm for some and you could be forgiven for thinking that the sky is falling chicken little.

If you have been in the market for any decent length of time you would have seen this all before and there is no material thing to worry about.

If you have picked good companies from the start at a reasonable price, with a good dividend, then never fear, opportunity has just reared its attractive looking head.

Rather than sell up why not do the contrary and do some buying instead. After all you would go and buy good from a sale or if you are given a good discount wouldn't you?

Makes sense really.


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How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition (Personal Finance & Investment) by William O'Neil Buy new: $16.82 / Used from: $4.43 Usually ships in 24 hours

c Share Investor 2007

Restaurant Brands New Zealand Takeover

Bongo666 wrote:

My observation is, surely they have run their ruler over it fully by now, if it is such a good fit with their purchase of Tegal(and I believe it is given the obvious synergies-cheap fricken chicken!!) why havent they moved yet? Could they be biding their time for another crap announcement? Seeing as PEP own the Collins group, a company that has been on my radar since 2000 and one that I mentioned on www.sharetrader.co.nz was a possibility of acquiring RBD, and looks like it is hungry to grow into a trans Tasman food group the absence of a bid for RBD seems curious to me. I am toying with the idea of buying a large stake, (for me) of up to 100000 shares. The possibility of this happening looks 85% certain. What do you think Snoop?


Snoopy from Share Investor Forum Wrote:

There are still some unknowns there Bongo. We don't know how much RBD will have to shell out to renew the franchises on the other half of their KFC and PH stores in May. There is the possibility that even if private equity makes a bid, and shareholders approve, that YUM will veto it. After all, RBD have been very compliant with YUMs requests on the store upgrade plans. And YUM get the franchise payments from RBD more or less regardless of the profitability of RBD itself. Why would YUM want to see RBD delisted? Do you think they would rather negotiate with a team of hard nosed bankers, or Vicky and the current crew? Finally you have to consider what might happen on the 15% chance, (assuming your figures are correct), that no bid is received. Maybe the share price will drop back to 95c or so? You could still have an 85% chance of a takeover deal going through and have an expected negative return if the downside payoff is significantly greater than the upside payoff. IMO, the only reason the share price has been creeping up in recent weeks is takeover speculation. I have my own holding in RBD that I am sitting on (neither buying more nor selling down) at the moment. You Bongo will have to make your own investment decision! SNOOPY discl: hold RBD

Happy Investing,

Share Investor

Talk RBD and other stocks @

Share Investor New Zealand


From Amazon

How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition (Personal Finance & Investment) by William O'Neil Buy new: $16.82 / Used from: $4.43 Usually ships in 24 hours

c Share Investor 2007

Sky City Casino 2007 HY Profit

A report in Granny Heralds' Sunday Rag(25.2.07)

Main points:

*Profit possibly down by 20% on last years half due to SKY CITY Ak losing to "high rollers"
*Profit sustained somewhat by strong Aussie gaming
*Profit for June 2007 FY of $100-110m
*28 Feb announcement for 2007 Half Year

Make Your Kid A Money Genius (Even If You're Not): A Parents’ Guide for Kids 3 to 23 by Beth Kobliner Buy new: $9.99 / Used from: $9.99 Usually ships in 24 hours

c Share Investor 2007

Restaurant Brand's New Zealand Takeover

The ongoing saga of the Restaurant Brands Takeover , the company that owns and operates KFC, Starbucks and Pizza Hut in New Zealand, looks set to continue. As I indicated months ago on my Sharemarket Forum www.shareinvestor.biz it looks like the private equity company that bought Tegal Chicken and Griffins last year is on the prowl for RBD.

RBD is in a mess at the moment so the buy price isn't going to be large but it will clearly top the current SP of $1.17.

Keep a close eye on the SP at www.nzx.com or at my Forum www.shareinvestor.biz

Happy Investing,

Share Investor



Tower ups stake in Restaurant Brands amid takeover talk NZPA Thursday, 22 February 2007

Tower Asset Management has increased its stake in Restaurant Brands ahead of a potential takeover of the fast-food company, The New Zealand Herald reported today.

Tower's latest buy was small – thought to be about 65,500 shares – but took its total holding to 5.04 per cent.

The Herald said it understood Restaurant Brands has engaged an investment bank – believed to be Macquarie Bank – to advise it about a potential sale.

Shares in Restaurant Brands, which owns the Pizza Hut, Starbucks and KFC franchises in New Zealand, closed unchanged at $1.14 yesterday.

In December, Restaurant Brands chief executive Vicki Salmon sent the share price up over 10 per cent when she noted people had been exploring the prospect of a takeover.

The Herald said at least two private equity companies are being mentioned in connection with Restaurant Brands – CVC Asia Pacific and Pacific Equity Partners.

CVC, a joint venture between CVC Capital Partners in London and New York's Citigroup, aborted a $1.65 a share bid in June last year.


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