Stock of the Week: Burger Fuel Worldwide

This Stock of the Week will be a surprise to many because I have been very critical of this company since its IPO listing in July 2007. Burger Fuel Worldwide [BFW.NZ], the "gourmet" burger franchisor company that collects royalties off franchisees as a means of revenue -but currently derives more than half its revenue from food and beverage sales at two company owned stores-and has limped from a failed, over-priced IPO and incurred big but dwindling losses along the way.

Its cash reserves are almost exhausted and its stated reason for their IPO, attracting more franchisees to gain revenue growth for the franchisor, has come to a grinding halt because of "capital restraints".

All negative so far, but wait there's more! Some positive stuff!

There is a chance that Burger Fuel, management could pull things off sometime in the future and make a good sustained profit.

One of the reasons I picked this stock was its share price. It is getting close but not yet at, its true value. At 32c it is roughly a third of its $1 IPO price. There is little interest in and few buyers lined up as at market close on Friday 19, with the first cab off the rank offering 10c a share and the lowest 1c - the lowest ever bids for this stock, so a clear opportunity exists.

Burger Fuel isn't one of those solid stocks you would buy and not expect to lose money, it is purely speculative and high risk but if you have, like me , been watching the trials and tribulations of this company over the last 2 years, and thinking about buying some, now would be the opportune time to start thinking about it.

Anything less than 15c would be a good starting point.

Good luck!


Stock of the Week Series

Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances


Burger Fuel Worldwide @ Share Investor


Burgerfuel: Dubai Marketing Hype
Burger Fuel 2010 Full Year Profit Analysis
Burger Fuel 2010 Full Year Profit Preview
Burger Fuel Worldwide: 2009 Half Year profit analysis
Stock of the Week: Burger Fuel Worldwide
Download full company analysis from Thomson First-Call
Burger Fuel doesn't rule out capital raising
Burger Fuel Worldwide: Closer look at Company Accounts
Analysis - Burger Fuel Worldwide: FY profit to 31/03/09
Burger Fuel: Running on Empty
Burger Fuel leaves investors hungry
Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary

Discuss BFW @ Share Investor Forum - Register free





c Share Investor 2009

Sir Robert Jones in his Autumn of Content

I am a contrarian investor of sorts. I say this because while I am buying stocks right now and looking at buying more, I also bought them while the market was at a higher level.

I have written about a couple over the last week, Michael hill and Doris Mousdale, and there are a couple of other New Zealand notables, Jan Cameron and Bricoe Group's [BGR.NZ], Rod Duke who are contrarians by nature.

Perhaps one of the worlds most famous contrarian investors is the world's richest man, Warren Buffett - he loves the current market turmoil, proclaiming such gems that he feels like a "Kid in a candy store" or a "Teenager in a whorehouse", when it comes to the prices he is paying for beaten down assets.

New Zealand has its own Waren Buffett in Sir Robert Jones.

He is as happy as a tar baby in a sandpit because the property tycoon has been buying property when everyone else is selling - NZ$100 million of deals done so far this year.

Some prescient quotes to a recent audience of property professionals show just how excited Sir Bob is:

"From a self- interest point of view, we look forward to a recession."

"We are not going broke. We buy buildings and those buildings are cheaper."

"Land developers go broke, building developers go broke, and for very good reasons, but they're too dumb to work it out for themselves."

"Why do banks keep financing them? Because the bankers get younger every year."

"I've survived more property cycles than most of you, so where's property going? Nowhere - property doesn't move."

You cannot get a more experienced commercial property man in Australasia than Sir Bob, as he points out he has seen this all before and no doubt capitalised on the troughs.

I recall him selling a large office block during one the boom times only to buy the same block back years latter for a much lower price - from memory it was a building in the 1980's Chase development, the full city block the "Finance Centre" in Auckland.

Sir Bob likens the economic cycles to the four seasons, with Winter the low point and Summer the high. He reckons we are in the Autumn of this cycle.

I think he is right and there is worse to come before it gets better but he certainly is making his autumn/early winter one of content rather than the alternative.

You should too if you have the cash.


Related Links

Listener Sir Bob Interview


Recent Share Investor Reading

• List of Bruce Sheppard's top NZX listed company debt worries
  
• Morgan's book "After the Panic" timely
• Charlies Group: A Triumph of Style over Substance
• MICHAEL HILL - Toughen Up: What I've Learned About the Tough Times
  
• Burger Fuel doesn't rule out capital raising
• Share Investor Portfolio: June 15 2009

Discuss this Topic @ Share Investor Forum


Related Fishpond Reading



NZ $28.64 @ Fishpond.co.nz

c Share Investor 2009

Burger Fuel Worldwide: Download full company analysis from Thomson First-Call

If you want to see how the Burger Fuel Worldwide [BFW.NZ] financial's stack up I have included a full collection of data out June 19, 2009 courtesy of Thomson Financial First Call Global/ASB Securities.

You will find balance sheets, ratios, charts, shareholder returns and all the Burger Fuel info you could poke a hot chip at. (see teaser below but download the full package at Share Investor Forum - you must join to download. It is free and takes less than a minute. I might do this for other companies if there is sufficient interest.

I only mention this because the company is getting close to my purchase price. Last sold at 32c and the next bid in at 10c (a low for the company) with one optimistic fellow offering 1c per share for 100,000 shares!

Key Measures for Burger Fuel Worldwide Value N/R Risk 2 Lower risk Growth N/R Income 5 Lowest VALUE Company Market Sector Aspect Earnings Model -- 0.89 0.88 P/E ratio -- 7.44 12.0 P/B ratio 4.38 0.85 1.68 P/E Growth Ratio -- 1.68 1.67 P/S Ratio 2.18 1.64 0.39 INCOME Company Market Sector Dividend Yield -- 7.7% 5.2% Franking -- -- -- Tax adj Dividend Yield -- 5.6% 4.1% Dividend Stability 0.0% 0.0% 89.3% RISK Company Market Sector Beta 0.67 0.98 0.74 Current Ratio 3.13 3.85 1.09 Quick Ratio 2.86 3.12 0.39 Earnings Stability -- 54.5% 53.7% Debt/Equity ratio 3.6% 0.0% 50.5% Interest coverage (x) -42.8 4.49 2.28 GROWTH RATES 10yr 5yr 1yr 2yr Fcst Sales -- -- 76.1% -- Cash Flow -- -- 52.6% -- Earnings -- -- 66.8% -- Dividends -- -- -- -- Book Value -- -- -16.4% -- Previous Close 52 week high 52 week low $0.32 $0.64 $0.20 P/E Ratio -- Sector Food & Staples Retailing Market Cap $17.0 Million Key Dates Listed 27/07/2007 Balance Date 31 March AGM -- Total Shareholder Return (avg annual rate) 1yr 3yr 5yr 10yr -20.0% -- -- -- Earnings and Dividends Forecast (cents per share) Curr -- -- EPS -1.3 -- -- PE(x) -- -- -- DPS 0.0 -- -- Yield(%) -- -- -- Source: Thomson First Call Global Estimates

Burger Fuel Worldwide @ Share Investor


Burger Fuel doesn't rule out capital raising
Burger Fuel Worldwide: Closer look at Company Accounts
Analysis - Burger Fuel Worldwide: FY profit to 31/03/09
Burger Fuel: Running on Empty
Burger Fuel leaves investors hungry
Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary

Discuss this Topic @ Share Investor Forum




c Share Investor 2009

ING & ANZ duped "investors" can take their own action

Unfortunately this is about financial skulduggery again.

This time regarding ING and ANZ fund's products that have been frozen had investors put in financial limbo until they can decide whether to accept ING's latest offer of 60 or 62 cents in the dollar and five years in an ANZ call account at 8.3% , take matters into their own hands and take legal action or continue to hold units in their respective funds.

This is because it seems the Commerce Commission/Securities Commission doesn't have the balls/motivation to do anything about it in a sufficiently expedient manner.








Depending on the level of duplicity or what most would consider fraud, that your advisor/ING or ANZ sold you these higher risk products in the first place, if any, will motivate you to take your own action.

Most will probably opt to take the money and run but not me.

If you have been falsely sold a product and you have documentation then you have a case, you don't have to wait for various lobby groups or any Commission to do anything on your behalf.

Depending on your level of investment you can take a case to the disputes tribunal up to $7500 with scope to increase that figure if agreed upon between the two parties. It will cost you 50 bucks.

A breech of the Fair Trading Act is where you should start but consult a lawyer and if you cant afford one go to your free community lawyer through the Citizens Advice Bureau

If your investment is a large one you have a case against the defendant but it will cost you to go to court.

If you got your advice from ANZ your beef is with them NOT ING and if it is an "independent" financial adviser, you go after them. Straight from ING, you go after those bastards.

Too many of these pricks have got away with shoddy and corrupt financial practices in the past and it is time someone took a stand and made an example of these ***ts.


Timetable for ING/ANZ investors

* Investors have until Monday, July 13 to decide on ING's proposal.

* Investors who went through the ANZ Bank have until July 31 to make a formal complaint.

* Investors who accept the offer should gain access to their money by August 28.

* Those who don't accept the offer will continue to own units in the funds.

* Investigations by the Commerce Commission are ongoing but won't be completed by the decision deadline.

* Complaints have also been made to the Securities Commission asking it to delay the offer until the Commerce Commission has ruled but the commission said yesterday it had no ability to stop the offer going ahead because the offer is not misleading or deceptive.


Related Links

Citizens Advice Bureau
Disputes Tribunal
Fair Trading Act


Recent Share Investor Reading

• List of Bruce Sheppard's top NZX listed company debt worries
• Morgan's book "After the Panic" timely
• Charlies Group: A Triumph of Style over Substance
• MICHAEL HILL - Toughen Up: What I've Learned About the Hard Times
• Burger Fuel doesn't rule out capital raising

Discuss this Topic @ Share Investor Forum




c Share Investor 2009