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Online Share Trading

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The Buger King Tie up

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barry_1
Super Contributor
This must make it one of the hottest share deals that has just been signed....I have added it to my preliminary small cap list for 2013....sashares2010.blogspot.com
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13 REPLIES 13
topgun
Super Contributor
Although a high growth market, very congested with multiple strong brands vying for market share. How profitable is McDonalds for instance? See also Keith's views...http://www.smallcaps.co.za/web/
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barry_1
Super Contributor
Hi....At the moment as i understand it Mac has only 5% of the market,Steers has 40%....Burger King is going to concentrate on the lower end of the market with first class products ,but lower prices....Grand Parade is already a very successful company and is the major partner in this JV.It has many tie ups which it also intends using at a later stage.
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SimonPB
Valued Contributor
An the key is backward integration which will take a long time
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Franksays
Frequent Contributor
Needs critical mass to get the benefits that come with economies of scale. I'm afraid 5 or 10 restaurants ain't going to shoot the lights out anytime soon. Can the market take another 200? I doubt it. McDonalds has less than that in SA. I'll personally give it a skip.
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kwagga
Super Contributor
Had a look at Grand Parade results and I like it. Solid set of financials, regular divi payer. Low PE. I don't expect the Burger King deal to shoot the lights out, but Buger King does make better food than McDonalds and as soon as the market realize that, I suspect you could see quite a few of these outlets around. Good deal for a good company. I like it and will take a small bite at this with a long term (5 years minimum) view on this.
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rsalie
Super Contributor
This will take time as others have suggested. Also, I see BK using SA as a platform for getting into the rest of Southern Africa.
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kicc
Frequent Contributor
It will take a while but better to get in now when the share price is relatively low and then wait and enjoy the profits. It is a well run company and this venture can take it to new heights. They are sitting on cash and also looking at other oppotunities. This could be the small cap of the year 2013.
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SimonPB
Valued Contributor
if it is going to the moon, lots of time to enter
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sponono
Super Contributor
precisely, its never to late to buy a stock or sell it short, right.
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Wino
Super Contributor
Quite a mountain to climb as Steers also do flame grilled burgers and are well established. Also upwards of 70% of the QSR market is chicken so it will take time and capital to also set up the logistics. On the positive side Adam Hansen is experienced in setting up food businesses such as Cape Town fishmarket, Leonardo's, Squires etc.
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Not applicable
Man versus Food size burgers will do
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prancing_horse
Super Contributor
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kicc
Frequent Contributor
I note that one of the directors bought 600 000 at 3.60. is the now the time to climb in for the big rise coming?
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