Brazil Fast Food Update: After Huge Run Up The Company Is Still Undervalued

Brazil Fast Food Update: After Huge Run Up The Company Is Still Undervalued is my first new article posted in months and can be viewed over on Seeking Alpha.  The article is a Seeking Alpha Pro article but will remain free for everyone to look at for the next few weeks.  In the article I revalue BOBS, analyze its float since I was not doing that when I wrote the original article, talk about its continued improvement in profitability and other metrics,and talk about the catalysts that are still in place to help unlock the value of the company.  Directly below is the introduction of the updated BOBS article.

I wrote my first article about the Brazil Fast Food Company(BOBS.OB) in December after having them recommended to me by Red from The Red Corner Blog. I have held them since buying into them at that time and after having a great discussion on the current valuation in the comments section of the original BOBS article on my blog I decided to completely revalue BOBS to see if it is under or overvalued now that the company’s share price has gone up from about $8 a share when I first bought to $14.50 per share now.

For the most part BOBS is operationally the same as the above article, except that it has continued to expand its restaurant count and number of franchisees, so please refer to that article if you are interested in hearing about its operations, competitive advantage that I think it has, and to see and compare its valuations, margins and catalysts from then to now. In this article I will be concentrating solely on its updated valuations, NOLs and a few other important factors like ROIC, EV, TEV, working capital, shareholders’ equity, debt, catalysts, a new potential risk, etc. Since I was not doing any kind of in-depth analysis of float I will also add this one thing to the article that wasn’t in the original.