Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF)

cmbourne (96.08) Submitted: 1/11/2012 12:59:54 AM : Start Price: $8.65 RMCF Score: -2.52

well run small company that pays 4.6% dividend

kastro662 (< 20) Submitted: 1/9/2011 8:16:22 PM : Start Price: $10.07 RMCF Score: -18.62

The company seems to be starting to hit on all cylinders lately. Their earnings bouncing back nicely and new franchises opening again. The partnership with Cold Stone has apparently been a success. The plans to feature it at about 200 Cold Stone locations bodes very well both for sales and for brand recognition. And on top of that their new venture into the Aspen Leaf self-serve frozen yogurt line of stores seems like a solid path to expansion and diversification.

urogunner (< 20) Submitted: 1/9/2011 12:05:56 AM : Start Price: $10.07 RMCF Score: -18.62

I first found this stock researching Hershey in June 2008. I love chocolate and this stock seemed to have potential for a long term value investor like me. At $10.20 the stock was selling in its low range for the year (share price range $10.05 - 18.04). I liked the numbers including a Debt to equity ratio of near 0, a dividend of 4% and a return on equity of 38%. I took a bite. Little did I know a recession was in store. The stock dropped. Ouch! Rule number one: Don't lose money. Rule number two: Don't lose money. So what's a value investor to do. Take another look. I had already ordered their chocolate and loved it. So I stopped in at a store while waiting for a flight. I love chocolate so maybe I can't make a fair assessment. So I took my better half Monette. Hmm she liked it too. Ok I like the product and I can certainly understand the business.
So I took another look at the numbers in 2009. Past 5 year average growth: Revenue 6%, Earnings per share 13%, and free cash flow 7%. Debt :Equity=O. Current ratio 3.7. Return on Equity 21%. Return on Assets 17%. Dividend 4.7%. The stock was selling at $8.61 per share. I figured the intrinsic value was any where from $9 to $15/share.
What about management. The founder of the company Franklin Crail owned 10% of the stock. He seems in it for the long haul.
What about the future? One, the company could flounder and go out of business. Two, It could get through the recession and have average future growth, ( This should be pretty good for the stock price given its numbers and value). Three, It could expand or add a related business which could significantly improve the stock. So I bought some more and continued to buy as the stock dropped to $5.75.
Now the recent earnings report has come out and this looked like their earnings are gradually improving. They have also added the Coldstone Yogurt. (I don't know about yogurt. I am an ice cream guy myself, but Monette says it is good. I trust her). Recent stock price $10.50. I still like the company and dividend. I will hold onto the stock for now.

girlcowboy3 (29.76) Submitted: 1/3/2011 10:10:10 PM : Start Price: $9.53 RMCF Score: -12.77

I love chocolate and I'm hoping it loves me back. I have had this on my watch list for a cuople of weeks and its been mostly positive.

dunloggin (67.21) Submitted: 12/15/2010 10:33:26 AM : Start Price: $9.12 RMCF Score: -10.93

Divi payer

tekennedy (63.57) Submitted: 12/13/2010 4:38:30 PM : Start Price: $9.13 RMCF Score: -11.85

I am happy this company has become ratable. From a longterm investment standpoint this has considerable potential. The company is 1/2 francisor, 1/2 packaged goods company (Although it mainly sells to franchisees: the company earns a franchise fee for items not manufactured by them and earns a profit from items it sells to franchisees). They are able to earn healthy returns, helped in part by the franchise model and them owning next to none of the stores. Their earnings are down recently because of the slow economy and will likely stay down for another year or so due to their dependence on travel (a significant number of their stores are reliant on air travel/tourist locations). Over the next 5-10 years the story becomes more enticing. I expect store growth over time to add meaningfully to earning, with the potential for huge growth if the dual branding with Coldstone works favorably (early results seem promising). Coldstone seems a great match as pairing the stores removes seasonality as RMCF stores often are busiest around Christmas while Coldstone is seasonally slow at that point. Bringing on board the name recognition of Coldstone is a big plus as well and if only 10% of the Coldstone stores are interested in selling RMCF candies that adds a solid 150 locations. With or without them RMCF has the potential to benefit as management has recently started a frozen yogurt franchise. I like the business, management seems to be doing well and the price is fair. I intend this to be my next purchase.

josephwrichards (58.54) Submitted: 8/9/2010 11:14:05 AM : Start Price: $9.27 RMCF Score: -24.04

Delicious chocolates, strong balance sheet (no debt, 3.8 current ratio), fair P/E ratio of 16.3, good profit margins. Not much growth during recession, but the product is so good, it should rebound.

Katt47 (80.50) Submitted: 11/25/2007 5:28:11 AM : Start Price: $14.41 RMCF Score: -36.35

Has eliminated long term debt. Sales are expanding.

Recessions often kill discretionary spending, but this rarely applies to candy. This was true during the great depression too.

JJandAEO (95.47) Submitted: 10/1/2007 5:47:18 PM : Start Price: $14.59 RMCF Score: -30.66

Small company, no debt, and a growing dividend. My kind of stock!

fran3477 (< 20) Submitted: 9/27/2007 5:19:31 PM : Start Price: $14.32 RMCF Score: -30.59

Earnings and is estimated to grow earnings by over 20%. Also, new stores at airports puts the company's products in front of consumers at a location where they are more likely to buy

NeroSagetrade (93.97) Submitted: 9/26/2007 12:44:12 AM : Start Price: $13.45 RMCF Score: -26.97

The Rocky Mountain Chocolate Factory is a specialty dessert store generally located in malls. As a personal buyer of the product I have to say they produce top quality desserts. From a financial perspective their growth has been steady and strong, their financials are solid, they are paying out a dividend now and technically they are showing a rounding base on the 5 year chart. I can see them solidly heading higher from here.

Nero

Sagetrade

nottodayboy (44.83) Submitted: 9/22/2007 12:26:58 PM : Start Price: $13.57 RMCF Score: +27.43

This company is in deep trouble. 50% of their franchisees are struggling or failing and managements commitment to the franchise system is doubtful. They own very few company stores which is indicative of managements lack of confidence in the business model. They are being out-competed in every retail venue in which they have stores. RMCF's same store sales and same stores poundage have been negative quarter after quarter and year after year for several years now. Store closings have accelerated and store openings have decelerated.

Additionally, some members of RMCF's BOD have questionable pasts including one(Clyde Engle) who has even spent some time in jail.

stick703 (< 20) Submitted: 8/21/2007 12:58:16 PM : Start Price: $12.98 RMCF Score: -29.51

More presence at airports puts the company's products in front of consumers at a location where they are more likely to buy (outside of a holiday period).

rd80 (99.37) Submitted: 8/17/2007 8:58:46 PM : Start Price: $13.00 RMCF Score: -28.95

RMCF is a $100 million market cap producer and retailer of chocolate. It trades at 15 times forward earnings and is estimated to grow earnings by over 15% next year. The company trades at about $15.50 a share, has 41 cents a share in cash and no debt. Margins look good and the current dividend yield is 2.4%. RMCF recently entered into an agreement with The Grove to market their chocolates in a number of airports.