Wednesday 22 July 2009

WANT TERRIFIC INVESTOR PERFORMANCE? LOOK TO RFG! ABQ DYING MISERABLE PATHETIC DEATH WITH ACCC, ASIC, ASX ALL CONDUCTING INVESTIGATIONS!

Here's this year's chart showing the high-flying and well-managed company RETAIL FOOD GROUP LTD (RFG) (in red) compared to the collapsing, haemorrhage-money, greedy, shonky, stuffing-their-pockets management of ALLIED BRANDS LTD. (ABQ) They both started out in exactly the same place. And once again ABQ management failures have squandered investor money and dudded franchisees.

These two companies are almost identical in shop numbers and franchisees. ALLIED BRANDS has 3 1/2 times the high-paid senior management than does RETAIL FOOD GROUP. Is it no wonder Allied Brands is on life-support? RFG has NINE times the market capitalisation. Clearly they understand that "PROFITABLE FRANCHISEES MAKE A PROFITABLE FRANCHISOR". Something the short sighted Peter Graham and Lachlan Mcintosh don't seem to have a clue about.

Some at Allied have discussed selling off Allied in pieces, trying to get some liquidity. There have reportedly been more low-level staff abandoning ship in the last two weeks. And rumours are the Westpac has withdrawn any future franchisee financing due to the dodgy balance sheet at Allied Brands.

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