Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

RBF: Great Growth Potential but at a High Price

RBF: Recent Jump in Share Price Leads to Overvaluation

RBF: The Excessive Outperformance May Come to a Halt

RBF: Strong Performance and Resilience Are Already Priced In

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

We revise our recommendation to SELL from HOLD but increase our target price to Bt12.20, implying a downside of 19% from the current price. We derive our target price from a 30% premium to the 2021E PB/ROE ratio of Asia ex Japan Consumer Staples due to RBF’s resilient business model.
Investment thesis:
<ul>
<li>Aggressive expansion to capture overseas growth opportunities, but already priced in</li>
<li>Strengthened relationship to Japanese partner enables profit boost</li>
<li>Legalization of hemp provides a new growth catalyst</li>
</ul>
Interim: A strong 4Q20 YoY where revenue grew by 9%, and gross profit margin expanded 1.4 ppts. We adjust our revenue forecast upward as the legalization of hemp in Thailand affects the growth prospects of RBF positively.
Risks: Slowdown in consumer spending, increased competition, delays and disruptions in production, failure to introduce innovative products, loss of large customers.

We revise our recommendation to SELL from HOLD but increase our target price to Bt12.20, implying a downside of 19% from the current price. We derive our target price from a 30% premium to the 2021E PB/ROE ratio of Asia ex Japan Consumer Staples due to RBF’s resilient business model.
Investment thesis:

Aggressive expansion to capture overseas growth opportunities, but already priced in
Strengthened relationship to Japanese partner enables profit boost
Legalization of hemp provides a new growth catalyst

Interim: A strong 4Q20 YoY where revenue grew by 9%, and gross profit margin expanded 1.4 ppts. We adjust our revenue forecast upward as the legalization of hemp in Thailand affects the growth prospects of RBF positively.
Risks: Slowdown in consumer spending, increased competition, delays and disruptions in production, failure to introduce innovative products, loss of large customers.

RBF: Hemp Hype Drives Stock Price Too High

R&B Food Supply PCL

RBF: Hemp Hype Drives Stock Price Too High