Q: With the recent decline in food and beverage revenue in the first quarter and the expectation of further weakness in the second quarter in this segment is it time to sell RPI?
5i Research Answer:
The balance sheet is much improved over the past few years, and the stock is attractively priced at 9X earnings with a 4.5% dividend. We would not really consider it a problem, but growth expectations are low, and an 8% decline in sales is not encouraging. Its small size also adds some risk. We would consider it 'OK' but not a must-own, certainly, and would consider it more of an income stock. Growth investors we think could move on.