what would buffet do?, page-10

cutecow...

I was silent before the price dropped because it was totally off my radar. I am genuinelly sorry that a lot of people have lost money on this float, and to me it smells as bad as the hedley group or rams... and when i read the prospectus it looks as bad on paper

1. 117 restaurants in QLD and 39 franchised in Thailand
2. High levels of debt

I mean... at the time of the float people believed that interest rates were rising and the Thai and QLD economies were already misfiring

Throw debt into the mix, and the motives of the sellers, and a management who probably haven't been used to the vagaries of public company reporting.

The core assets may be strong, but the debt levels, unproven management and economic factors will mean that this company is swimming upstream for a while.

At these prices; if earnings stabilise its definitely a buy.

I like cheap companies... that's why I have been silent on CKF for a while (forever)... now that its cheap I will be following it closely.

I just hope it doesnt end up like Hedley... or RAMS

Someone should be accountable for this. Faulty clothes imported from China have a better warranty than this $250m business.