FBR/Famous Brands Limited

OK maybe I was wrong in my post below. R100 is quite far off considering yesterdays close at R78!

This one is recovering nicely, in fact quite resilient to the latest market stutters. GBK will hang like a noose around their necks for some time, but the message is simple stick to what you know and that was the key to their success in the past. The South African business is solid and delivers returns to investors. The outlets in the rest of Africa and Dubai etc. seem to be ok but please stay away from the UK and similar markets.

Getting back to R150 will be a slow process if at all,  but the next milestone has to be R100 and keeping those dividends coming. Let's see what the interim results dish out.

I did not like the SENS this week regarding the property lease from a company owned by FBR directors. The amount seemed a bit exorbitant!. 

Do we rename this thread to Infamous Brands?

The share price slide continues, what's going on at this former Darling of the JSE? I know GBK is hurting, but that much, surely the SA operation is still strong? I managed to sell some before the GBK news broke but I am now concerned about what I have retained. Either the market is being cruel or there is more to the current price now in the R80's. 

I don't live in SA so would appreciate some local commentary.

I am willing to bet on the potential recovery at Taste being more attractive to investors in the short term. The forthcoming results are going to be horrible by the sounds of the trading statement, but a hint of a turnaround and good international brands at stake may warrant a look in here.

Whilst I have faith in Famous Brands, I can't see the recovery coming soon. Still a fantastic company in SA but the UK operation has been a steep learning curve and will weigh upon the price for some time.

I have held Famous Brands shares fir a long while back to the day when they were still Steers. Reading this article has made me think that it will be a while before any significant recovery in the share price is seen. R120 is still an achievement but the highs above R150 may be history. Sorry to be bearer of bad news.

https://news.sky.com...urants-11270877

And competition from Burger King is killing Steers.

Famous Brands (FBR) taking a pounding after their latest trading update. Should have learnt from Spur. It is not easy doing business in the UK.

www.southafricanmi.com/blog-10oct2017.html

Above compares the share price performance of Taste, FBR and SUR over the last 4 years (or any date users specify).

Thanks for the analysis. I prefer Spur in this sector - good brands and Rocomama's acquired at fraction of the cost of GBK. Not directly comparable but think FB may have paid too much.

Year End results due in the next two weeks.

I have not seen a trading update which makes me think that the fast food franchise market may be flattening out as the number of franchises has increased to the point where consumers whose spending in this sector has been maximised has to be spread amongst more and more outlets.

The proof of the pudding for Famous brands will be its success outside of SA, Nigeria in particular. I still expect a solid set of results from FBR

I am with you on that one Gamma.

Seems like Famous Brands have responded vary favourably to the threat of the latest competition.

Very strong move today.

The news doesn't really justify it but hey I'll take it 

Thanks guys.

Does anyone know what the negotiations were about or who they were talking to? Were there any rumours?

WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Famous Brands shareholders are referred to the cautionary announcements
dated 19 August 2014 and 30 September 2014 and advised that the discussions
referred to in these announcements have been terminated.

Accordingly, shareholders no longer need to exercise caution when dealing
in their Famous Brands securities.

Midrand
31 October 2014

WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Famous Brands shareholders are referred to the cautionary announcements
dated 19 August 2014 and 30 September 2014 and advised that the discussions
referred to in these announcements have been terminated.

Accordingly, shareholders no longer need to exercise caution when dealing
in their Famous Brands securities.

Midrand
31 October 2014

Thanks Gamma, what you have said is very true. Indicators and ratio are great to analyse the market but they should only be used as a guide, the market will price the share as they see fit. The trick is to be in before the market noise starts. A very high profile addition to the board which I am sure will pay dividends in years to come,

I do believe this one will keep on going and as you say when the cautionary is lifted and an announcement made further future earnings will be priced into the share.

Funny that no one has commented on today's important announcement. In fact this for me was far more interesting than the results. For a long time I've been waxing about the similarities between SAB and FBR. The management pedigree and culture that was an important factor in driving SAB has been transposed to FBR over the years. Its obvious in the way they operate, not to mention their business model. Now Adami's appointment is the icing on the cake. Forget the PE and whether 24 is high or not. Yes it sure is, but what will the fwd PE be the day after FBR makes the big acquisition we expect it to make -  then slap on your usual 15-20% historic growth plus potential synergies from said deal.

Remember, Aspen looked just as expensive at R50.

ps, my 2c...PEs and PEGs are good ratios unless you are dealing with a very acquisitive company.

Why are you kicking FBR here?

Technically speaking it was much more expensive a year ago.  I agree it is still expensive - but so is the rest of the market.

Last I checked average PE was close to 20...

 

Sure, I won't be buying more at this level, but while they are still churning out consistently good results, it remains a clear hold in my view.

 

Anyway, I plan to take a little profit at >110 only to bring it back down to less than 5% of my portfolio. 

And hopefully I will use that profit to buy some of the "value" that you speak of. 

That's exactly what I'm doing at the moment mate.

However I always take a "Would I be buying at these levels?" approach to what I hold in my portfolio. FBR doesn't qualify anymore. (hence the "kicking" you refer too")

A strategy that works for me.

Partial profit taking and rebalancing portfolios works for others. Each to his own...

Is there a "value stocks" thread out there? Maybe the LT Portfolio one will suffice.