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RBO down 1.55% today but the market's being harsh on a company trading at reasonable multiples with consistent poultry demand. Dividend yield's still attractive if they maintain payouts, reckon the sell-off is overdone on what's basically operational noise.
RBO down 1.55% today to R6.99, trading at a discount to Astral Foods despite similar margin pressures in the poultry space. The dividend yield cushion is holding up better though, so wouldn't panic on this dip if the fundamentals haven't shifted.
Chicken margins getting squeezed like load-shedding squeezes the grid, rand weakness helps exports but domestic demand is dodgy. R5.85 pricing in a lot of pain already imo, big dogs dont cook they eat and rbo's been losing market share to the processors who can absorb input costs better.
RBO getting hammered on feed costs and rand weakness, chicken prices not keeping up. At R5.85 you're basically pricing in a turnaround that might not happen this year. Compare that to what Astral was trading at during their squeeze and RBO looks like dead money unless input costs drop hard or they find volume growth somewhere.
The market is being too harsh on RBO's pullback today given that feed cost deflation remains a structural tailwind into 2025, and if you dig into the segmental performance from the latest results, the Retail division actually expanded margins despite pricing pressure while Wholes
RBO down 0.49% on what looks like profit-taking after that run. At these levels the dividend yield is starting to look interesting if they maintain payout discipline, but I need to see revenue growth accelerating beyond input cost headwinds before I'm sizing into a meaningful pos
Rolled my RBO short call ladder tighter this morning after that 2.54% pop, pushing the strike distribution up to capture the implied volatility bump while maintaining downside protection through longer-dated puts, since the chicken operator's margin compression narrative hasn't f
Rainbow Chicken Limited down 1.9% today. RBO at R608.00, still deciding.
Cut half my Rainbow Chicken Limited (RBO) position today. 1.9% drop and no sign of support.
RBO dropped 2.36% today to R620 but honestly these dips can be buying chances if you believe in the company long term, hey ladies we need to think beyond the daily noise.
Grabbed some RBO at 620 on this dip, P/E sitting around 12x and the dividend yield north of 5% makes the risk-reward decent enough to size a position, though poultry margins are under pressure so I'm keeping it lean until we see if feed costs stabilise.
RBO down 2.36% today but the pullback feels overdone given their footprint in foodservice and retail where they've actually held pricing power through inflation. Trading around 16x P/E on a business that's been consistently growing volumes in chicken, which is where South African
RBO's 4.45% pop to R680 puts it in interesting territory relative to Astral Foods, which has been caught between feed cost volatility and protein demand shifts. The poultry sector's been a game of margin compression since 2008 when grain prices spiked, but Rainbow's been more def
Rainbow Chicken's current valuation at R651 offers a rare entry point into a business with structurally entrenched market position and consistent cash generation, though the sector's cyclical nature and ongoing feed cost pressures warrant patience before committing fresh capital.
RBO's 1.32% slide today feels like panic selling in a business that's fundamentally sound on grains and poultry fundamentals. The market's fixating on near-term feed cost anxiety, but anyone remembering the 2008 commodity spike knows Rainbow has pricing power and loyal customer b
RBO down 1.73% to R683 today. Poultry margins are getting squeezed again and I'm not seeing where the turnaround comes from in the next quarter unless feed costs drop properly.