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

CAPS Rating: 5 out of 5

The Company is an international franchiser and confectionery manufacturer.

Results 1 - 19 of 19

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Member Avatar fairlyreliable (39.51) Submitted: 5/6/2014 1:32:46 AM : Outperform Start Price: $11.39 RMCF Score: +4.46

small growth stock, good financial numbers, and a dividend, get paid to wait

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Member Avatar edj1989 (45.45) Submitted: 1/1/2014 12:47:55 PM : Outperform Start Price: $11.31 RMCF Score: +2.99

just off 12 week low, strong numbers with dividend payout. minimal debt

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Member Avatar BuffettJunior1 (96.96) Submitted: 1/30/2013 7:38:45 PM : Outperform Start Price: $11.74 RMCF Score: -25.74

This is the type of stock you buy and hold forever. The company's growth strategy over the next decade could turn it into a billion dollar company.

Here is an article I recently published about this company:

http://seekingalpha.com/article/1135221-rocky-mountain-is-a-chocolate-covered-growth-stock

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Member Avatar WakeUpInvestor (23.86) Submitted: 1/8/2013 8:05:04 AM : Outperform Start Price: $10.55 RMCF Score: -17.51

The expected growth outside the U.S. will continue to fuel results. The master agreement in Japan will be beneficial going forward.

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Member Avatar beefangusbeef (61.48) Submitted: 11/29/2012 3:18:16 PM : Outperform Start Price: $9.83 RMCF Score: -12.36

This goes into the CAPs portfolio in the section dedicated to things that are bad for you that you can't live without. Wake up, eat a donut, smoke a cigarette, drink some whiskey, and have chocolate for dinner. With an investment strategy this diversified the Fool should give me my own newsletter.

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Member Avatar MoneyTweetzz (< 20) Submitted: 7/13/2012 10:00:04 PM : Outperform Start Price: $11.36 RMCF Score: -36.30

Earnings and revenue growth: about 10 percent a year. Future international expansion. Great business model. Return on equity: 21%. Definitely a buy.

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Member Avatar gumballking (< 20) Submitted: 5/4/2012 1:02:20 PM : Outperform Start Price: $9.81 RMCF Score: -16.92

Great Micro cap company.
Fundamentals are all good.
Pays a nice dividend.
Expanding with:
Maple Leaf frozen yogurt.
Asian Franchise Deal. (Japan, China, Korea)
Cold Stone co- branding stores.

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Member Avatar cbearer7 (< 20) Submitted: 3/14/2012 11:42:33 AM : Outperform Start Price: $8.56 RMCF Score: +4.54

I first discovered RMCF in a Fortune Small Business article in 2007 and I liked the article so much I started following them. I read there whole 2009 10-k cover to cover and decided to start investing in them in 2010. There is a Rocky Mountain Chocolate Factory located about 15 minutes from my house. I love there caramel coated apples.

They have zero long term debt, around 25% ROE, around 45% Gross Profit Margin, a P/E around 15 and I would value them around $20, which is about double their current $9.50 market, in the next 10 years.

The company is well managed and still run by the original founder.

I am long on RMCF in the future.

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Member Avatar kastro662 (< 20) Submitted: 1/9/2011 8:16:22 PM : Outperform Start Price: $9.17 RMCF Score: -20.15

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.

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Member Avatar urogunner (< 20) Submitted: 1/9/2011 12:05:56 AM : Outperform Start Price: $9.17 RMCF Score: -20.15

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.

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Member Avatar girlcowboy3 (47.90) Submitted: 1/3/2011 10:10:10 PM : Outperform Start Price: $8.68 RMCF Score: -11.05

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.

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Member Avatar dunloggin (73.44) Submitted: 12/15/2010 10:33:26 AM : Outperform Start Price: $8.30 RMCF Score: -7.97

Divi payer

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Member Avatar josephwrichards (57.98) Submitted: 8/9/2010 11:14:05 AM : Outperform Start Price: $8.44 RMCF Score: -27.54

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.

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Member Avatar Katt47 (76.07) Submitted: 11/25/2007 5:28:11 AM : Outperform Start Price: $13.13 RMCF Score: -48.68

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.

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Member Avatar JJandAEO (97.06) Submitted: 10/1/2007 5:47:18 PM : Outperform Start Price: $13.29 RMCF Score: -40.31

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

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Member Avatar fran3477 (< 20) Submitted: 9/27/2007 5:19:31 PM : Outperform Start Price: $13.05 RMCF Score: -40.11

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

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Member Avatar NeroSagetrade (92.44) Submitted: 9/26/2007 12:44:12 AM : Outperform Start Price: $12.25 RMCF Score: -34.40

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

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Member Avatar nottodayboy (38.02) Submitted: 9/22/2007 12:26:58 PM : Underperform Start Price: $12.36 RMCF Score: +35.13

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.

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Member Avatar rd80 (98.23) Submitted: 8/17/2007 8:58:46 PM : Outperform Start Price: $11.84 RMCF Score: -37.15

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.

Results 1 - 19 of 19

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