Rocky Mountain Operations Deteriorate Amid Unending Conflict

Quipus Capital
1.56K Followers

Summary

  • RMCF is a franchisor of chocolate stores and ice-cream stores in the US. The company has a manufacturing facility in Colorado.
  • The company's business model was profitable but suffering from long-term issues that required a strategic change.
  • Not only has RMCF not initiated such change, but macroeconomic headwinds have accelerated its business deterioration.
  • The company has also spent significant sums, managerial time and reputation in useless shareholder battles.
  • In this context, the company is definitely not worth its current price.
Chocolates.

MarkGillow/E+ via Getty Images

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) is a franchisor of chocolate stores and ice-cream stores in the US.

For a more detailed understanding of the company's business and structure, please refer to my initial coverage of the company in January

This article was written by

Quipus Capital
1.56K Followers
Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very small fraction of companies should be a buy at any point in time. However, hold articles provide important information for future investors and a healthy dose of skepticism to a relatively bullish-biased market.Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

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