Allied Brands (ABQ) shares are on the rise.This could be the...

Allied Brands (ABQ) shares are on the rise.This could be the next David Jones type performer.

We have been told that Allied Brands will earn a net profit of between $6 million and $7 million for f/y ending 30 June 2009 and there are 264.264 shares on issue. There are also options to exercise at 60 cents not sure how many but these are way out of the money.

This equates to earnings per share of 2.6 cents.

On this basis the shares are selling on a price to earnings ratio of 9. This would appear to be very low as earnings should hopefully rise significantly in f/y 2010 based on an improvement in the economy.

Allied Brands (ABQ) runs the Baskin Robins, Cookie Man and Kens Cardiology chains.