ABOUT RAND RCL FOODS
📊 RCL Foods was first founded in 1916 with the establishment of its first animal feed mill. In 1963 Rainbow Chicken’s first processing plant was commissioned in Hammersdale, and the company was later listed under the same name on the Johannesburg Stock Exchange in 1989. RCL came to its present make-up after a number of lucrative acquisitions of several prominent food producers, including TSB Sugar and Foodcorp.
📊 The company functions as a food producer with a broad portfolio that consists of branded private food and pet products, incorporating such household names as Rainbow Chicken, Sunbake, Pieman’s, Selati, Yum Yum, Ouma and Mageu. The group operates across three divisions: The Consumer Division, the Sugar & Milling Division and the Logistics Division, employing over 20 000 people.
📊 RCL Foods made the move to diversify its portfolio and broaden its geographic footprint with several joint partnerships, resultantly gaining market presence in Swaziland, Botswana, Zambia and Uganda.
📊 The group is listed on the Johannesburg Stock Exchange (JSE), where it trades under the stock symbol –RCL with a market cap of over R13 billion.
📊 The company operates along a “more food, more people, more often” policy, which entail a number of key points. Firstly, it aims to deliver more nourishing food with a greater variety, make food choices available to a wide market segment, and provide products aat affordable prices.
📊 Secondly, the company aims to build its portfolio with strong household brands, and gain a bigger market share by driving value-added products with relentless innovation. It aims to increase its market share in existing categories while finding new consumers in new categories and markets, which will be further aided by increased distribution and better penetration.
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VISION & VALUES OF RCL FOODS
- RCL Foods has been able to weather a difficult consumer economy, with financial data reflecting a revenue increase of 8% to R25 billion for 2016 alone, aided largely by its strategy of diversification and product enhancement.
- While the group enjoys a longstanding reputation and a wide market presence in South Africa, its joint ventures in Africa have allowed it to mitigate domestic market pressures with a solid performance in its international markets. The purchase of Foodcorp and TSB greatly helped to broaden the company’s market presence, and the restructuring of its Rainbow Foods brand was an important step in boosting consumer confidence.
- Product enhancement positively affected consumer sentiment and created value in its offering, with a strong focus on product efficiencies and quality serving to greatly improve its offering, working in turn to mitigate the oversupply of chicken in the market with a broadened variety of products.
- The result has been a steady climb in growth, reflected in its share price on the JSE, with increased cash flows serving to bolster the company’s performance in 2019.
MARKET PERFORMANCE OF RCL FOODS
- A turnaround in consumer spending coupled with an enhancement of RCL’s product range are forecast to improve its share price and provide positive dividend yields for investors who purchase shares on the JSE.
- A diversification from the poultry industry has served to widen the group’s presence in other sectors of the food market, so that investors can expect a fair buy that will reap results in the long term. RCL Foods‘ efforts have proven successful, with the live online stock charts showing that RCL shares are a strong buy today.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy RCL FOODS Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN RCL FOODS STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE RCL FOODS STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of RCL FOODS stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy RCL FOODS stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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