RTN (Restaurant Group) has been a sorry old performer for me. In retrospect, I should have sold out in March 2016 after the profit warning, and saved myself a lot of heartache.
RTN is a bit like NXT (Next): it has had a good run-up to 2015, but then came off the boil.
RTN was tipped by Questor in October 2016, and the shares have made a bit of a comeback since mid-December.
Gross margins had decreased for 27 w/e 31.7.2016, and I think I would want to see that reversing before having more confidence that we’re in proper turnaround mode.
There is a lot of contradictory data floating around, so I don’t think it’s clear which way this is going to go.
I had previously decided to tough it out until the results, which will be published on Wed 25 Jan. The thing that tipped me over the edge, though, was that results are going to be published much later than normal. The results are generally published on the 9th of Jan, although last year they were published on the 14th.
This seems suspiciously like a case of “bad numbers take longer to add up”. It might all be just paranoia on my part, of course, but a cynic might say that they know they are going to produce lousy numbers, and are hoping for some kind of pickup in the beginning of January in order to have something positive to say.
Anyway, this is in so way a “sell” recommendation. I’m just saying what I did.
See you again on the 25th, when we’ll know whether I am right or wrong.