get own house in order first, page-2

Hi Stayer, good to see some postings here, I've been waiting for someone to talk too, no not really, I was just awaiting the numbers yesterday..

Before I address what you're saying this stock is fundamentally cheap, and probably due to Sizzler. It seems that end of the business still hasn't shown any signs of bottoming yet. Now I don't know anything about 'snag stand' but If it's anything like Grill'd or Guzman, then they could be onto a winner. This casual dining segment seems to be a real growth area, and an area where Collins may need to chase if they are to escape their sizzler woes. Yes I will say earnings are flat, but remember this stock is on a P/E of 10.. Not demanding at all, and the dividend has been upped around 12.5%. If management prove to be conservative on their guidance, and sizzler stops bleeding I think we will see SP appreciation.

As for your other points, maybe as a holder send Perkins or the team an email about one of the KFC's you mention. But I for one am a Coke drinker and just because they have Pepsi, doesn't detract me from going there. Most punters go there for the chicken. What I like about this business is the exposure to QLD, and when the low interest rate environment kicks in and the AUD weakens, we should see sales growth given the potential tourist dollars. I'm looking for cyclical exposure to the east coast at the moment, and I think this stock is pretty undemanding. And I'm not alone... Have a look at some of Brendon Lau's comments from Eureka Report, his uncapped 100 has a great track record of late.


'Analysts polled on Bloomberg have pencilled in a 9.4% year-on-year lift in EPS to 20.4 cents for the year ending April 30, 2015. Consensus estimates call for a 5.8% improvement to EPS for 2013-14, but this will likely be upgraded slightly as well as the transaction is immediately EPS accretive.

This puts Collins Foods in a good position to grow dividends as it remains committed to a 50% payout ratio'

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'If management can convince investors that Sizzler is turning a corner in the current financial, it could justify a re-rating to around 12 to 14 times. This implies at least a 33% uplift to its share price, and even then, the stock would still be trading at a discount to its peers

I recommend investors buy the stock in anticipation of the re-rating as its balance sheet can sustain further increases to dividends over the next three years, with analysts expecting dividends to rise to 12c a share by 2015-16 from 9.5c a share currently. The company’s financial year ends in April and it will release its half-year result on November 28.'