OK - must start out by declaring an interest in this stock - I do own shares in this company - please do your own research!!!!
I came across FRR a few weeks ago and starting building a stake - normally I'm a trend trader but this one caught my attention for fundamental reasons. It has been around for decades (although only listed in march last year) and has really good financials as well as paying an annual yield of almost 10% fully franked! I studied it for quite a while and the reason I think the yield is so high is because the market is only factoring in one div (it has only paid one since floating - the other only being declared today) - giving it a yield of about 5% - but when you factor in the second div it comes out at about 10%.
The only real negative I could find (and it is a serious one) was that one of their major contracts (with coles) is due for renewal in march and if they lose that - their income for 2007 onwards would take a hammering! I think this risk is fairly small but it is still there!!!
Management seem to be recognising that they are really reliant on two main contracts and are now starting to diversify by buying bolt on businesses. This seems to be working - but is still a bit early to know for sure.
From a technical point of view it has been up against the 80 centish barrier for quite a while and broke through it today (on the interim profit announcement) so things are looking up.
Anyway - one to research and would be very interested in anyone elses thoughts on this company.
PLEASE NOTE: I own shares in this company - please do your own research!!