In fact the group has mainly posted losses as a listed entity which is why investors have dumped the stock since the IPO.

On July 26 the company reported an operating cash loss of $527,000 for the quarter ending June 30,2019 with just $1.16 million cash on hand, but then just three days later put out a confusing announcement telling investors it had in fact posted positive EBITDAI of $161,000 for the quarter. 

Today it put out another unusual announcement to the ASX as its latest chairman boasted that it had enjoyed a strong start to FY 2020 and posted positive EBITDA for the month of August.

'With the company now generating positive cash flows, increasing with each successive quarter the board is now very confident that our profit result for FY2020 will be incredibly well received by the market," commented its chairman Nicholas Dover.

The post Oliver's Real Food tells market "no doubt" gains in shareholder value are coming appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.16% to 6,032.40
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.10% to 6,144.00
• AUD/USD at US 75 cents
• Gold at US$1,292.35 an ounce
• Brent Oil at US$79.02 a barrel

The biggest movement today in the ASX200 was from Santos Ltd (ASX: STO), the oil company rejected Harbour Energy's approaches. The fall also affected fellow oil company Beach Energy Ltd (ASX: BPT), it dropped 4%.

Infant formula companies also had some of the biggest falls today. Market darling a2 Milk Company Ltd (ASX: A2M) dropped by 5.68% and Bellamy's Australia Ltd (ASX: BAL) declined by 4%.

Logistics tech company WiseTech Global Ltd (ASX: WTC) dropped by 3.7% after revealing it raised $100 million of cash at $13.30 per share yesterday from an institutional shareholder.

In other news, Commonwealth Bank of Australia (ASX: CBA) announced another sale of one of its non-core businesses, the share price dropped 0.48%.

Small cap Oliver's Real Food Ltd (ASX: OLI) fell by a massive 57% today after issuing a profit downgrade.

Rio Tinto Limited (ASX: RIO) shares rose by 0.24% after telling investors it could sell one of its mines for a big sum.

Finally, Australian Agricultural Company Ltd (ASX: AAC) fell by 1.77% after announcing a loss in its FY18 result.

Here are some of today's top stories:

• Only 1 in 2 Sydney homes sell at auction as price crash warning lights flash red
• 6 reasons why BHP Billiton Limited (ASX:BHP) is better than Rio Tinto Limited (ASX:RIO)
• Why investors should look overseas for growth

The post ALL ORDINARIES finishes lower Wednesday: 9 shares you missed appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they have fallen deep into the red:

The Myer Holdings Ltd (ASX: MYR) share price is down 5.5% to 44.5 cents. After the market closed on Tuesday the embattled department store operator released a response to recent criticism from Premier Investments Limited (ASX: PMV). The response doesn't appear to have been sufficient to convince some shareholders that things will improve under its new leadership.

The Oliver's Real Food Ltd (ASX: OLI) share price has plunged a massive 47% to 13 cents after the healthy fast food company released a trading update and profit downgrade. Due to weak trading and the underperformance of new stores, the struggling restaurant operator has downgraded its EBITDA guidance by between 31.3% and 37.5% just a matter of weeks after reaffirming it. While I think healthy fast food is a nice concept, I'm not convinced Oliver's will be able to pull it off.

The Santos Ltd (ASX: STO) share price has tumbled 9% to $5.86 after the energy producer rejected Harbour Energy's takeover approach and terminated discussions. The company's independent directors and managing director unanimously resolved to reject the proposal on the basis that that it does not represent the full value of the company and is not in the best interests of shareholders.

The Sirtex Medical Limited (ASX: SRX) share price has fallen 4.5% to $28.46 after the regenerative medicine company advised that Varian Medical Systems would not be coming back with a better takeover offer after CDH Genetech confirmed that its offer was now binding. Some shareholders may have been optimistic that a bidding war would commence.

The post Why these 4 ASX shares have fallen deep into the red today appeared first on The Motley Fool Australia.

In morning trade the healthy fast food operator's shares have emerged from a trading halt and are down a whopping 55% to 11 cents.

Why are Oliver's Real Food's shares being crushed?

On Monday Oliver's Real Food requested a trading halt while it prepared to release a trading update and revised FY 2018 earnings guidance.

As I mentioned yesterday, it seemed likely that this update was going to be a negative one. Seldom do companies request a trading halt for a positive revision to their guidance.

Unfortunately for shareholders I was right this time and Oliver's Real Food reported an alarming downturn in its performance.

According to the release, the company has downgraded its EBITDA guidance to between $3 million and $3.3 million (including the profit of approximately $1.8 million from the sale of properties). Previous guidance that was reaffirmed just seven weeks ago was for EBITDA of approximately $4.8 million.

That's a stunning downgrade of between 31.3% and 37.5% in just the matter of weeks.

Management has blamed this on numerous factors including weak trading over the Easter and school holiday period, poor performing additions to its store network, delays to other openings, and one-off costs.

While management has advised that initiatives have been put in place to improve its performance, it hasn't been enough to keep many shareholders from heading to the exits.

One initiative includes expediting the development and planned delivery of its in store self‐ordering kiosk system. Management expects this to lead to an increase in store sales, but I'm doubtful.

I think these kiosks work well to boost sales in crowded restaurants which suffer from long queues. But as far as I'm aware, Oliver's is not suffering from this luxury. Perhaps the money being put into this initiative would be better spent trying to get people through its doors.

Overall, whilst its shares could arguably be at a level that makes it an attractive speculative investment, I'm not convinced it's investment grade at this point.

Because of this I would suggest investors focus on unhealthy fast food purveyors instead such as Collins Foods Ltd (ASX: CKF) and Domino's Pizza Enterprises Ltd (ASX: DMP).

The post Why the Oliver's Real Food Ltd (ASX:OLI) share price has been crushed today appeared first on The Motley Fool Australia.

Here's why their shares are halted right now:

Jatenergy Ltd (ASX: JAT)

This energy-cum-infant formula company's shares have been placed in a trading halt pending an announcement relating to the acquisition of a business. No further details have been provided, but an announcement is expected to be made on Wednesday. The company could potentially be looking to follow in the suit of its peers by acquiring a facility to manufacture its infant formula products. This would, however, be a costly exercise and likely mean it needs to raise funds to do so.

Oliver's Real Food Ltd (ASX: OLI)

This healthy fast food operator requested a trading halt while it prepares a trading update and revised earnings guidance for FY 2018. Its shares are expected to remain offline until the commencement of trade on Wednesday. Unfortunately I expect this to be an earnings guidance downgrade from Oliver's as it rarely takes this long to prepare an earnings upgrade. I'm not overly convinced on the viability of the Oliver's business model and would suggest investors stay clear if it is indeed a downgrade. Especially given how it was only six weeks ago that the company reaffirmed its guidance.

Sirtex Medical Limited (ASX: SRX)

This regenerative medicine company requested a trading halt this morning pending the release of an announcement on material developments in the proposal from CDH. Earlier this month the China-based alternative asset fund manager made an unsolicited non-binding, indicative and conditional proposal to acquire 100% of Sirtex for a cash price of $33.60 per share. As a result of this offer, the company postponed its scheme meeting related to its $28.00 per share offer from Varian Medical Systems. Shareholders will no doubt be hoping that Varian has come in with a better offer or that CDH's offer has become more concrete.

The post Why these 3 ASX shares are in trading halts appeared first on The Motley Fool Australia.

The RFG share price has fallen from $7 at the end of 2016 to today's $0.89. Does that mean it's bad news for all fast food providers? I don't think it does. There are other shares that could have much better futures:

Domino's Pizza Enterprises Ltd. (ASX: DMP)

This business is the franchisor for Domino's in Australia, New Zealand, Germany, France, Japan, Belgium and the Netherlands.

Its growth rate has considerably slowed over the past year but I think the pizza mogul business could generate a lot more growth in time because it has plans to significantly increase its store count in Europe and improve its earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

Once Domino's can start delivering pizza with automated vehicles, robots or drones it could significantly increase its profit and 'cool factor'.

Domino's is currently trading at 26x FY18's estimated earnings.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large franchisee of KFC restaurants in Australia, it is expanding in Europe by making acquisitions in Germany and the Netherlands. It will also grow its Sizzler chain in Asia with franchises and it has just started opening Taco Bell chains in Australia. The one Taco Bell store has been very popular since it opened.

I think Collins has done well so far and it has several different chains it can expand with, which should lead to growing earnings over time.

Collins is trading at around 17x FY18's estimated earnings.

Oliver's Real Food Ltd (ASX: OLI)

The first two companies I mentioned have a lot of unhealthy food options but Oliver's wants to disrupt this market and offer 'real' healthy organic food.

This appears to be resonating with consumers nicely, in its recent half-year report Oliver's reported revenue growth of 93%, same store sales growth of 5.7% and the gross margin increased from 65.7% to 75.6%.

Oliver's isn't yet making a net profit after tax but it may be this time next year.

Foolish takeaway

I like all three companies but I'm particularly interested in Collins and Oliver's. Both could expand their store counts significantly over time and that should be a good boost for revenue, margins and profit.

The post Can fast food deliver your portfolio a quick profit? appeared first on The Motley Fool Australia.

This is because nobody should theoretically know a company and its prospects better than its own directors. So when insiders are shown to be buying shares it is often regarded as a bullish indicator and vice versa when they are seen to be selling shares.

Three shares which have been experiencing meaningful insider buying recently are listed below:

Oliver's Real Food Ltd (ASX: OLI)

According to a change of director's interest notice, non-executive director John Diddams has acquired 200,000 shares in the healthy fast food company for a combined price of $49,787.92 through an on-market trade. This has increased Mr Diddams' holding to a total of 1.625 million options and 2.675 million ordinary shares. Oliver's recently reaffirmed its FY 2018 EBITDA guidance of $4.767 million after replacing its CEO.

Orocobre Limited (ASX: ORE)

Non-executive director Leanne Heywood has taken advantage of Orocobre's recent share price weakness and topped up her holding with a small purchase. Heywood picked up 2,000 shares at approximately $5.42 per share through an on-market trade. This has increased Heywood's holding in the company to 10,800 shares. Orocobre's shares are down 33% from their 52-week high at the time of writing amid concerns over the future price of lithium.

Zip Co Ltd (ASX: Z1P)

This payment company's chairman and non-executive director, Philip Crutchfield, has added more shares to his considerable holding. According to a change of director's interest notice, Mr Crutchfield has picked up 40,000 shares on-market for a total consideration of $31,548. Last week Zip Co announced a partnership with Tigerair Australia that will see its interest-free payment method added to the low-cost carrier's suite of payment options. The offering is expected to go live in the middle of April.

The post Insiders have been buying these 3 ASX shares appeared first on The Motley Fool Australia.

Four shares that have defied the market and raced higher are listed below. Here's why they are ending the week on a high:

The Avz Minerals Ltd (ASX: AVZ) share price rose 8.5% to 25.5 cents before being placed into a trading halt this morning. According to the release, AVZ Minerals requested the trading halt as the prospective lithium miner prepares a response to a price query request from the ASX. AVZ Minerals' shares are expected to remain in the halt until the earlier of commencement of normal trading on April 4 or the release of the response.

The Oliver's Real Food Ltd (ASX: OLI) share price has jumped 16% to 25.5 cents after the healthy fast food company announced that it has changed its CEO. The controversial and often outspoken Jason Gunn will be replaced with Gregory Madigan on April 9. Mr Madigan has previously been a director of Subway UK.

The Senex Energy Ltd (ASX: SXY) share price has climbed 8% to 40 cents after the energy company announced that it has been granted a petroleum lease and preliminary environmental approvals from the Queensland Government to develop Project Atlas for domestic gas supply. Senex now expects to receive all remaining State and Commonwealth approvals in mid-2019, with delivery of first gas to the domestic market targeted for late 2019.

The Tawana Resources N.L. (ASX: TAW) share price is up almost 3.5% to 46.5 cents after the miner provided an update on ore commissioning at its Bald Hill lithium and tantalum mine in the Eastern Goldfields region of Western Australia. Performance tests have been taking place, one of which revealed that initial sampling of the primary concentrate returned a high-quality grade of 7.03% lithium carbonate.

The post Why these 4 ASX shares are ending the week on a high appeared first on The Motley Fool Australia.

The business makes long-term investment decisions for its clients, so any investment it makes is worth considering to see if it would be a good long-term investment for our portfolios as well.

IOOF recently announced that it had acquired 5% of the voting power of Oliver's Real Food Ltd (ASX: OLI).

Oliver's is seeking to shake up the fast food industry by serving food that is fresh, natural and organic. It aims to provide a healthy alternative on the roads and claims it might be the world's first 'certified organic fast food chain'.

IOOF became a substantial shareholder two days after Oliver's had released its half-year result for the six months to 31 December 2017.

In that result Oliver's revealed a number of pleasing things. Revenue increased by 93% to $17.6 million, the gross margin increased to 75.6% from 65.7%, there was same store sales growth of 5.7%, operating activities cash flow was $1.8 million compared to a negative $0.1 million last year and earnings before interest, tax, depreciation and amortisation (EBITDA) was $1 million compared to a $0.7 million loss last year.

Overall, this seemed like a solid result and I can see why IOOF would be interested when the share price fell 8.3% on the day.

Oliver's management gave guidance that FY18 EBITDA would hit the prospectus forecast of $4.767 million and that revenue would be within 5% of the forecast $42 million.

Foolish takeaway

If the Oliver's offering continues to resonate with customers then it could steadily grow into a sizeable small cap. However, revenue and profit will need to grow through increased and returning customers, it can't just be from price increases. I think Oliver's has the potential to be an exciting stock, as long as same store sales continue to grow and price doesn't become an issue for people.

The post Why IOOF Limited is a major shareholder of Oliver's Real Food Ltd appeared first on The Motley Fool Australia.

Below are a few of the biggest declines being seen amongst the most popular small cap shares today:

• The Auscann Group Holdings Ltd (ASX: AC8) share price is down 10% to $1.30.
• The Big Un Ltd (ASX: BIG) share price is off 6% to $2.89.
• The Bubs Australia Ltd (ASX: BUB) share price is lower by 5.5% to 68 cents.
• The Fastbrick Robotics Ltd (ASX: FBR) share price is down 6% to 15 cents.
• The LiveHire Ltd (ASX: LVH) share price has fallen 7.5% to 93.5 cents.
• The LiveTiles Ltd (ASX: LVT) share price is lower by 7% to 45 cents.
• The Oliver's Real Food Ltd (ASX: OLI) share price is down 8% to 23 cents.
• The Probiotec Limited (ASX: PBP) share price is off by almost 8% to 84 cents.
• The SKY and Space Global Ltd (ASX: SAS) share price has sunk 9% to 15 cents.
• The Wattle Health Australia Ltd (ASX: WHA) share price is down 9% to $2.08.
• The Yojee Ltd (ASX: YOJ) share price has fallen 5% to 18.5 cents.

Why have small cap shares fallen today?

With the market well and truly in panic mode, a lot of the higher risk shares are coming under significant selling pressure today.

Small cap shares are certainly high on the risk spectrum, especially given some of the high valuations that these shares trade at.

Should you buy the dip?

I feel a lot will depend on what happens overnight in U.S. markets. If U.S. markets recover and the bull market continues, then a lot of these small cap shares could recover also.

But if there are signs that the bull market has come to an end, then I fear that investors will become far more conservative and unwilling to pay over the odds for growth. In light of this, I would suggest investors keep their powder try for the time being and consider taking some profit off the table if they already hold them.

The post These small cap stars have been crushed today appeared first on The Motley Fool Australia.

It makes sense for Challenger to invest for the long-term because it needs its assets to help it outperform the annuity returns that it is giving to its clients.

One of Challenger's latest investments is Oliver's Real Food Ltd (ASX: OLI), Challenger announced to the market that it took a 5.04% stake on 25 January 2018.

Oliver's is seeking to shake up the fast food industry by serving food that is fresh, natural and organic. It aims to provide a healthy alternative on the roads and claims it might be the world's first 'certified organic fast food chain'.

There has been a big push over the past few years by various organisations and bodies for people to eat healthier. Oliver's could be the food answer that people are looking for.

Of course, the idea is nice but as investors we need to see that the business is good and growing.

In its quarterly release last week Oliver's revealed that cash receipts for the period were $10.5 million, resulting in net operating cash inflow for the quarter of $1.8 million, compared to $7.7 million and $5,000 respectively in the September quarter. This was a very impressive improvement in one quarter.

Year-on-year same-store sales growth was 5.7%, which was ahead of the prospectus' forecast of 5.1%. I think this statistic is one of the best to show how popular the Oliver's concept is with people. If growth was just coming from opening new stores it would be a less impressive growth story.

The gross margin was 75.6%, again this was ahead of the prospectus forecast. Management attributed this stronger performance to good implementation of supply chain initiatives, retail price increases and improved store management.

Three new stores were opened during the quarter, bringing the total up to 26. If another three stores are opened in the current quarter that will be store growth of more than 10% in one quarter.

Oliver's finished the quarter with a cash balance of $2.3 million, which was an improvement of $500,000 from the September quarter. On top of that, the company sold a freehold property for $1.85 million which settled on 19 January 2018. The funds have been banked.

Foolish takeaway

What I take away from all of these numbers is that Oliver's is at the very start of its growth journey, but its message is proving popular with consumers. A couple of years of strong like-for-like sales growth should prove the company can keep growing. It is already cashflow positive, which should allow it to expand the business organically without needing much debt. I think Oliver's is one to watch, but it's still early days so I'd only invest a small amount to start with.

The post Why Challenger Ltd likes Oliver's Real Food Ltd appeared first on The Motley Fool Australia.

Three shares at the small cap end of the market that made a notable move higher are listed below. Here's why:

The Change Financial Ltd (ASX: CCA) share price is up 3.5% to an all-time high of $1.17. This morning the fintech company released its second-quarter update which revealed record transaction volume growth of 17%, deposit growth of 18%, and purchase growth of 16% for its consumer division quarter-on-quarter. According to the release, Change Financial now has 150,000+ direct to consumer customers using its award-winning ChimpChange Mobile Banking platform and received customer deposits of more than US$19.2 million during the December quarter. I've been very impressed with its growth, though I do have slight concerns over its cash outflows. Its cash balance was reduced to $4.8 million from $6.7 million during the latest quarter. At the current burn rate I would estimate this will be enough for three more quarters.

The Gage Roads Brewing Co Limited (ASX: GRB) share price is 4.5% higher at 9.3 cents following the release of its quarterly update. Although the company recorded an unaudited EBITDA result of $1.3 million for the first-half, down from $2.8 million for the prior corresponding period, the result was in line with expectations. This was largely due to the $0.9 million of non-recurring income in the prior corresponding period and a $1.1 million increase in sales and marketing compared to the prior period. While I'm not ready to hit the buy button, I do think Gage Roads could be one to watch. Especially if its contract with Optus stadium proves to be a success.

The Oliver's Real Food Ltd (ASX: OLI) share price jumped 15% to 26.5 cents after its quarterly update revealed cash receipts of $10.5 million and net operating cash inflow of $1.8 million for the three months ending December 31. This was a sizeable increase on the $7.7 million and $5,000, respectively, it delivered in the September quarter. In light of this much improved performance, I think the healthy fast food company is worth a closer look. And considering the ongoing consumer shift away from junk food to healthy options, I think Oliver's could have a bright future ahead of it.

The post These 3 small-cap shares posted strong gains today appeared first on The Motley Fool Australia.

Here are three shares I think are well worth watching:

Oliver's Real Food Ltd (ASX: OLI)

Oliver's is a newly-listed food company that's setting up locations on highways throughout the east coast of Australia. Using the catchy phrase 'Would you like beans with that', it aims to serve people real food instead of junk food.

Management revealed an impressive update at the AGM. Revenue increased by 21.2% in FY17, same store sales growth was ahead of the forecast at 6.3%, Oliver's acquired 100% of Red Dragon Organics and it's on track to achieve FY18's prospectus forecast.

Oliver's could have a great 2018 because of how many new stores it's going to open and there could be more impressive same store sales growth.

MNF Group Ltd (ASX: MNF)

MNF offers Voice Over Internet Protocol (VOIP) services to Australia retail and wholesale customers, which is a much cheaper form of communication than landline telephone.

Management updated the market at its AGM. It predicted that gross profit will grow by 23%, earnings before interest, tax, depreciation and amortisation (EBITDA) will grow by 19% and earnings per share (EPS) will grow by 18%.

The above forecast could turn out to be fairly conservative because it doesn't include any new major customers or acquisitions, it's only based on organic growth.

MNF is currently trading at 32x management's conservative FY18's estimated earnings, which seems reasonable for the amount of organic growth it might produce in 2018 and beyond.

MFF Capital Investments Ltd (ASX: MFF)

MFF has been one of the best performing listed investment companies (LICs) over the last few years.

According to Bell Potter's quarterly LIC report, MFF's pre-tax NTA had grown by 21.9% per annum over the last five years to the end of September 2017. I think this strong performance is likely to continue because of the high-quality shares in its portfolio.

Some of its top holdings include Visa, Mastercard, Home Depot, Bank of America, Lowe's, Wells Fargo, JP Morgan Chase, US Bancorp and Alphabet (Google).

Foolish takeaway

I'd be happy to buy all three shares at today's price, as each one offers exciting growth but are very different from each other. If I had to pick one, I'd choose MFF Capital because it has proven to be a very good capital allocator and it's a good idea to get more overseas exposure.

The post 3 shares to start 2018 with a bang appeared first on The Motley Fool Australia.

However, there are certain businesses which I think have less risky business models but could still create fantastic returns for investors:

Fastbrick Robotics Ltd (ASX: FBR)

Fastbrick is developing a robotic truck that aims to build brick walls. A robotic truck alone sounds like an interesting idea, but it's the speed of the truck that could turn it into a product used across the world.

The 'Hadrian X' robot apparently will have the ability to build a wall in a few hours that would take a team of labourers all day.

Global construction companies are taking notice, with Caterpillar taking a $2 million stake earlier in the year.

Bubs Australia Ltd (ASX: BUB)

Bubs is an infant formula business with a difference compared to a2 Milk Company Ltd (Australia) (ASX: A2M). It uses goat milk, which gives it quite a good unique selling point compared to other suppliers at this stage.

Goat-supplied formula has a small market share of 5% of the overall formula market in China, but it's growing rapidly. According to the CEO the goat formula sector is achieving a 50% compound annual growth rate at the moment.

Oliver's Real Food Ltd (ASX: OLI)

The headquarters of major quick-food brands like McDonald's, KFC, Subway and Burger King are all in the USA. However, perhaps Australia is seeing the start of its own power food brand.

Oliver's aims to produce real and healthy food for customers. It is believed to be the world's first certified organic fast food chain. It describes its food as fresh and natural, free from additives and preservatives.

In its quarterly update for the three months to 30 September 2017 management revealed that same store sales had grown by 6.3%, which was better than the prospectus forecast of 5.1%. If this can continue for many years ahead then Oliver's could be quite cheap today, with management confirming guidance of Net Profit After Tax (NPAT) of $2.4 million for FY18.

Foolish takeaway

All three companies could potentially do very well. I think Oliver's is the lowest risk and most likely to succeed, however Fastbrick could truly shoot the lights out if it can create and sell many trucks.

The post Here's how I'd invest $3,000 in speculative shares today appeared first on The Motley Fool Australia.

Four shares which haven't been able to follow the market higher are listed below. Here's why they started the week in the red:

The AuMake International Limited (ASX: AU8) share price has plunged 20.5% to 15.5 cents. AuMake is an Australian-owned retail company which connects Australian suppliers directly with daigou and Chinese tourists. It hit the ASX boards at a listing price of 8 cents last week, meaning its shares are still up almost 100% despite today's decline.

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen almost 2.5% to $5.05. This morning Deutsche Bank suggested that the recent dip in the iron ore price might be a buying opportunity for rivals Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP), but didn't appear to believe it was for Fortescue.

The Oliver's Real Food Ltd (ASX: OLI) share price has tumbled 9% to 20 cents despite there being no news out of the healthy fast food company. After a strong start to life on the Australian share market, its shares have now fallen almost 55% from their high. The current share price could make it worth a look potentially.

The Orocobre Limited (ASX: ORE) share price is down almost 3% to $5.01 today. Most of the lithium miners are lower today as their bullish run starts to show signs of fading. Whilst I think they all have bright futures due to the insatiable demand for lithium carbonate, I believe that this has now been built into their respective share prices.

The post Why these 4 ASX shares are starting the week in the red appeared first on The Motley Fool Australia.

Here's what the update said:

• Net profit after tax (NPAT) is expected to be a loss of $3.2 million instead of $2.4 million like forecast
• This is due to additional costs on store and franchise acquisitions that were not expected
• Also due to delays in opening new stores

This morning the company provided a further update to clarify that it has bought back the last of its franchised stores for $0.8m, or 4x earnings before interest, tax, depreciation and amortisation (EBITDA).

Oliver's is an interesting business because typically branded store chains, like Domino's Pizza Enterprises Ltd (ASX: DMP) and Retail Food Group Limited (ASX: RFG) use the franchise model. This outsources costs onto the franchisees and reduces the capital requirements for the operating company, making it more profitable and scalable.

By contrast, owning its stores will make it harder for Oliver's to expand because it will require more capital. It does, however, allow the company greater control over its business which may prove crucial as the company aims to build a brand and a reputation.

Yes but is it a buy?

I find Oliver's an interesting business and think that there is unquestionably a huge opportunity for healthier fast food. However, from a valuation perspective, I think about it this way:

1. Initial Public Offerings (IPOs) are typically optimistically priced
2. Oliver's debuted at 20 cents per share
3. Losses are going to be greater than forecast during the IPO process, due to unforeseen costs
4. Oliver's shares are trading for $0.22 at the time of writing; i.e., 10% more than their IPO despite the discovery of previously unknown issues

Though this is simplistic, I would suggest that Oliver's may be a touch overpriced today. Including escrowed shares and restricted securities, Oliver's has close to 210 million shares on issue, implying a market capitalisation of $46 million.  Considering that the company is currently loss-making and has $7 million cash in the bank, it is also unclear how much it can grow without having to raise capital.

While Oliver's is an interesting company, at today's prices it is best left on the watch list in my opinion.

The post Oliver's Real Food Ltd share price plunges 20% on downgrade appeared first on The Motley Fool Australia.

Four shares which haven't been able to follow the market higher are listed below. Here's why they have started the week in the red:

The Beadell Resources Ltd (ASX: BDR) share price has fallen 4% to 18.7 cents following the release of the gold miner's quarterly report. Investors appear to be very disappointed with Beadell's all-in sustaining cost which rose to a massive US$1,558 per ounce during the quarter. This means it currently costs Beadell more per ounce to mine gold than the current spot price of US$1,268 an ounce.

The Oliver's Real Food Ltd (ASX: OLI) share price has tumbled 15% to 28 cents after the healthy fast food chain revised its full-year guidance. According to the release, it has become evident that the forecast loss for FY 2017 will be exceeded. Management now expects to post a net loss after tax of $3.2 million compared to the forecast loss of $2.4 million. FY 2018 guidance remains unchanged.

The Sandfire Resources NL (ASX: SFR) share price is down 3.5% to $5.75. Following the release of its quarterly update on Friday, analysts at Credit Suisse have reiterated their underperform rating and $4.65 price target on the miner's shares. According to the note, the investment bank believes subdued copper prices in the medium-term will negatively impact the company's future earnings.

The Treasury Wine Estates Ltd (ASX: TWE) share price has fallen 3.5% to $12.35 despite there being no news out of the wine company. I suspect this decline may be related to investors being concerned about the impact that the strong Australian dollar is having on its substantial international earnings.

The post Why these 4 ASX shares started the week in the red appeared first on The Motley Fool Australia.

Here are three notably strong performers which could be worth keeping a close eye on:

The ELMO Software Ltd (ASX: ELO) share price has risen 17.5% since hitting the ASX boards at the end of June at a listing price of $2.00. ELMO is a software as a service company, providing cloud-based talent management software solutions to customers such as Bank Australia, Elders Ltd (ASX: ELD), and Grant Thornton. The company's HR software is designed to provide organisations with a centralised approach to managing an employee's lifecycle from hire to retire. According to Frost & Sullivan, the global market for human capital management solutions is expected to be worth approximately US$15.4 billion by 2018. This gives the company a sizeable market opportunity and arguably makes it one to watch.

The Moelis Australia Ltd (ASX: MOE) share price has risen a remarkable 81% since its IPO in the middle of April. It's not hard to see why the financial services company's shares have rallied so strongly. At the end of June Moelis upgraded its full-year underlying EBITDA guidance to $29 million. This is a 25% increase on its IPO Prospectus forecast of $23.2 million. Further to this, the company has forecast full-year earnings per share of 16.5 cents. Which means its shares are changing hands at approximately 25x forward earnings now. I feel this makes its shares about fair value now.

The Oliver's Real Food Ltd (ASX: OLI) share price has gained 85% since landing on the ASX towards the end of last month. Whilst I'm a big fan of the company and believe organic healthy fast food is a great idea, at 33x forward earnings I feel its shares are fully valued now. As I said last week, I see a lot more value in the shares of unhealthy fast food rivals Domino's Pizza Enterprises Ltd. (ASX: DMP) and Collins Foods Ltd (ASX: CKF) right now following Oliver's strong gain.

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At the time of writing the recently listed organic fast food company's shares are up a massive 30% to 43.5 cents.

Impressively, today's jump means that its shares are up 50% in the last five trading sessions and 117.5% since its IPO last month.

What happened?

The company has been busy in the last 24 hours and made two market sensitive announcements.

The first was made after the market closed yesterday, revealing that Oliver's has secured another strategic location in Queensland.

This location is about 255 kilometres north of Brisbane on the Bruce Highway at Maryborough. The company will pay $2.2 million for the acquisition and will fund it entirely from the proceeds of its IPO.

The acquisition is expected to generate revenue of $1.5 million and EBITDA of $0.25 million in the first full year of operation.

The second announcement, released this morning, was that it has now opened its first Queensland-based store on the Cunningham Highway at Aratula, approximately 88 kilometres south of Brisbane.

Should you invest?

Whilst I do think that these developments are positive, I'm not sure they really justify such an increase in its share price. Especially given how expensive its shares are already.

With a total of 209 million shares outstanding and a share price of 43.5 cents, Oliver's now has a market capitalisation of $90.9 million.

In FY 2018 the company has forecast a net profit after tax of $2.4 million, which means its shares are changing hands at approximately 38x forward earnings now.

I feel this is a little expensive and see greater value in the shares of fast food rivals Domino's Pizza Enterprises Ltd. (ASX: DMP) and Collins Foods Ltd (ASX: CKF).

The post Why the Oliver's Real Food Ltd share price rocketed 30% higher today appeared first on The Motley Fool Australia.

Here are four that caught my attention:

Bingo Industries Ltd (ASX: BIN)

This waste management company listed on the ASX at $1.80 per share last month. Since then trading in its shares has remained rather subdued and its shares are just a touch higher at $1.81. But as far as Macquarie is concerned, there is significant upside potential. Brokers at the bank recently slapped an outperform rating and $2.33 price target on its shares. I like the defensive nature of the waste management industry and think Bingo could be worth a closer look.

Cann Group Ltd (ASX: CAN)

This medicinal cannabis company listed at 30 cents per share in May and has more than doubled in value since then. Cann Group is focused on the breeding, cultivating, and manufacturing of medicinal cannabis for sale and use within Australia. It was the first company in Australia to be granted a licence to research and cultivate medicinal cannabis. Whilst I think it has a strong management team and a lot of potential, I feel it is still too early to invest in the company.

Kelly Partners Group Holdings Ltd (ASX: KPG)

The shares of this provider of accounting and taxation services to private small and medium enterprises have performed very strongly since hitting the ASX boards at $1.00 per share. After a series of gains, its shares last closed 45% higher than its IPO price at $1.45. With a market cap of $65 million and the company forecasting net profit after tax of $9.3 million in FY 2018, I feel Kelly Partners still looks cheap even after its strong gain.

Oliver's Real Food Ltd (ASX: OLI)

This organic fast food company hit the ASX boards with a listing price of 20 cents last week. Since then its shares have climbed 35% higher to 27 cents per share. Whilst I am a big fan of the company and believe it has a lot of promise, I would suggest investors hold off an investment for the time being. If the company can live up to its prospectus forecasts, then it will no doubt prove to be a bargain buy. But it certainly has set the bar high. This year management expects to post a $1.2 million EBITDA loss (excluding IPO costs), before swinging to an EBITDA profit of $4.8 million in FY 2018.

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