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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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The Restaurant Group

January 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RTN
  • Price:
  • 141p
The acquisition of Wagamama and rights issue were narrowly voted through (by c.60%-40% with 80% of shareholders participating) at the EGM on 28th November. Rather like Brexit, this deal has split opinion with bulls citing Wagamama’s strong growth record and the potential to replicate it in places like airports, while bears cite the cut in dividend (6.6p forecast for ’19), share dilution and high levels of debt to fund it. Time will tell but we will give management the benefit of the doubt.Canaccord notes the deal will be dilutive in year 1, neutral in 2 and eps enhancing in the third year with rights adjusted eps forecasts for 14.7p, 13.2p and 16.4p in FY’18-’20 before a jump to 19.8p in ’21. Its new t ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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