Sinking ... hardly ... a lot of analysts were speculating that something would happen, a sale/spinoff ... this was not based on any public information from the company itself. Bob Evans has issues, but do you not think the folk in New Albany already realize this. The company has been under new leadership for a couple of months. Change takes time.
Totally agree. In an deflationary environment with gas and commodities plummeting in price too? This should have been a monster quarter.
Keep playing yesterday's clips of Najarian reiterating his triple whammy language. They do it every time. The PE on this thing is still very high. No reason to buy at these levels.
Unless I'm missing something, again, no money based on what I'm seeing in the cash flow statement. Near term outlook is lousy. You take the company private because it's a cash cow and the value isn't being recognized by the market. That's not the case here. I don't see the cash. Negative FCF for trailing 12 months prior to this qtr and stock is overpriced at 30X.
I don't know. I've been making a lot of $ the last couple of months playing the bounces on stocks that get overly crushed after earnings or news.
But reading the excerpts of the earnings call and what analysts are saying, it sounds like the restaurant side is in disarray. Tipped vs untipped employees? Trying to figure out staffing on how to sell broasted chicken? Are you kidding me?
They sell meats to grocery stores which are higher margins. They also sell package goods to grocery stores and thats why it should be split. I just threw Buffett in but I feel they will go private this year. That was the rumor back in 2012. That is when the stock started taking off if you look at the chart back in 2012.
So it was trading at 30X earnings before the outlook cut and now it's trading at 30X after the outlook cut and I don't see where they are truly generating a lot of FCF. Unless I'm missing something, generated nice FCF in 12, negative in 13 and 14, and so far none in 15. Like eating in the restaurants and no, I don't think it's going away either, but to own the stock, I'd like to see it _going_ somewhere. I'm not seeing that. Buffett isn't going to buy something like this. Restaurants are a nice place to eat so I don't understand it - think the BOD need to do a review here and make sure they have the right management team running the show.
The company was a beat but its ok to buy some here. You know this company isn't going to disappear from the planet. The company had rumors in 2012 that they might go private because they couldn't get out of the $40 range. Now the company went from $60 to $46 and hire Morgan Stanley and its not for a spinoff. I would bet they go back to private or watch pork in Omaha with Buffett sometime this year. Off the bat he would split the company.