This company is headed into the toilet. Quality has slipped, portions are down and now they are resorting to not scheduling maintenance fix its to show profits. Also they have held off paying their outstanding debts to show more profit recently. I Hear talk about doing lease backs and driving up stock prices again. One time shot in the arm and if they do this ride the wave and get out fast.
In just two weeks, the shorts have made out like gangbusters. One doesn't have to look hard to find out where this one's headed. What's going to happen if the markets ever reach the over-due decline that so many prognosticators seem to believe is just ahead?
At one time, didn't this fund have a very large stake in BOBE??? They still have 11,000 shares available to benefit from explosive growth?? Patience is a virtue as you re-investing the dividend into additional shares and at the current price around $44.00 as the price decreases you can pick up some shares on the cheap! That said, I wonder how cheap will it get????
11,100 Bob Evans Farms, Inc. 096761101 BOBE 50.03 555,333 0.8
My son works for Bob Evans and its the same old story. The people that are in charge are all friends. Need more qualified and knowledgably people actually operating the facilities .I am quite sure all plants are the same. Its a poorly run business. Just doubled the size of one of their facilities and do not even have electrical blueprints for it. I do not know about their restaurants...never have been to one. They have expanded some facilities and closed others. Really do not know how this will turn out. There are more efficiently operated businesses out there. JMO
I agree with the 6 year stall. That said, how can Wall Street accept that type of performance without demanding change less private equity?
Yes, the stock has stalled the last 6 years with no revenue growth. However, I think you can make some changes at the top. however, it is better to keep the current management than to allow the private equity monsters to take it.
Now take these dividends, say they do not even grow the dividend anymore. Say the company is run conservately pays down debt and just keeps up with inflation. Over the next 1000 years, the company will pay out $1240 in inflation adjusted dollars. Thus BOBE is worth with current management $1240. If the stock goes private equity becasue some frauds get on the board we lose the $1240.
billberggreen, how do you grade the performance of the new management team that has been in place over the past 6+ years?? Other than using cashflow to retire stock, thus raising the dividend, which is not always a good thing, what initiatives has Davis implemented, that are bearing fruit for the shareholders?
made a typo. The present dividend is higher than most in the Sp500. The dividend still grows 10% a year. We need to get private equity away from this stock. They are financial terrorists and only care about buying and undervalued company on the cheap. The board was correct, a 95% vote like Crimea should be required to take a company private.
How are you coming up with a 3.5% div??????????????? With today's close of $48.03, the div. is 2.5%, so if it was trading at it's old 52 week high, the div. would be even less. Help me understand your 30% over estimation of the divided???? Typo???
A stock is not meant to be sold to private equity for pennies on the dollar. Poor individuals are suppose to buy a businesses via stocks they can pass on to their grandchildren. In the last decade or so, there has been an assult by private equity on the public sectors. IMHO, they do this because it is much more tax advantageous being a private equity firm. You can load a company up with debt issue a dividend, then use the debt as income in another private equity firm to avoid corporate income tax.
Warren Buffet generally pays no dividend tax or capital gains tax. He can tap into the dividends that would be normally going to investors and take a train in China as a business deduction. Anyone associated with private equity should immediately be removed from the board. Stocks are not meant to unlock value, but to be value by issing dividends and stock growing dividends 10% a year meets that criteria. Please Sandell sell your shares and move on. Please BOBE end the buybacks for a while until the raiders are gone and bump the dividend to 7%. All you are doing is risking the firm by increasing their share percentage.
If you don't like the way BOBE is run, why don't you sell your shares and buy stock in companies you do think are run well. The bylaws should be changed requiring a 99% vote to take a company private.
this stock pays a 3.5% dividend and grows it 10% plus a year. I hope you go buy mnkd or fb or something. Why do all these private equity vultures always go to the most undervalued companies? To give this company away to private equity has got to be the dumbest thing to do.
What right do you have to talk to private equity. Private Equity is #$%$. This company pays a 3.5% dividend and grows their dividend 10% a year. I hope they all know each other and are friends. Private equity wants the company because it is so undervalued and well run. Tell your PE buddies to go buy FB or MNKD. Don't let these guys anywhere near the board unless they come back with 90% of the shares outstanding. You are welcome to buy them in the free market.
Sunny Street Cafe
Smoked Sausage Breakfast
Two delicious hickory smoked sausage links, split and grilled to enhance their flavor. Served with two eggs any style, toast, and a side of fresh fruit, grits, or hash browns.
Replace Red Lobster, with BOBE and it sounds very familiar!
The investment group, Starboard Value, is pushing for a special meeting to be held before the 2014 annual shareholder meeting, held in the fall. Starboard Value argues the separation of Red Lobster from Darden “is the wrong spin-off, at the wrong time, and for the wrong reasons.”
Its reasoning stems from the integrity of Red Lobster’s real estate, which it states is extremely valuable.
According to Starboard’s research, Darden’s real estate is worth, at minimum, around $4 billion. Instead of spinning off Red Lobster, Starboard is looking to separate the real estate—either through an outright sale, a Real Estate Investment Trust (REIT) spin-off, or a merger with an REIT.
BOBE is currently heavy into stock buybacks and that is not as risk free as many believe.
Similar buybacks were very popular back in 2007 as markets peaked before their 2008 collapse.
Analyst's were promoting stock buybacks in 2007 as a benefit to stock holders. This is where being older and having invested though so many cycles comes in handy! An example of a company that did 2007 buybacks is Safeway. Safeway, a company familiar to many that follow BOBE, did aggressive stock buybacks in 2007, and are just now above their 2007 price, and they can thank Kroger and the Private
Equity market for that. Sound familiar??? It does to this simple street investor. Will it be the Street or the Private Equity market that will propel BOBE higher?? I am thankful for the superior educational background of the diverse team assembled at BOBE that's leading them through these turbulent waters, not like those old hicks that use to call the shots, to help me make my BOBE buy, hold, sell decision. There's a lot money on the table boys and girls in New Albany, make the right decisions!