Papa John's does not have the best ingredients!
All of the PJ's stores mix their sauce with water
just like Pizza Hut! They use canned mushrooms, their
cheese is made by the same manufacturer as the other big
chains! Leprino cheese, check it out! They have convinced
people with their FALSE advertising about better
ingredients, better pizza! Perception is fact and at this
point that is the PERCEPTION! I like to think what goes
around comes around and John Schnatter has his coming
around! His tactics have been questionable to say the
least! He changed the company's advertising concerning
dough just like a cheap democrat! "We would never use
dough made on the same day" when all their previous
advertising would say "using fresh dough made daily" now they
didn't say "where" they made the dough, just that is was
made daily. Give me a break Johnny boy!! This company
is on a roll, make your money now, for the long haul
this company is not a good one!!
I have not been frequenting this board lately, so
I am sorry for the late response. But in response
1. PZZA stores do NOT add any
water to their pizza sauce.
2. PZZA uses only
3. Leprino supplies the major
pizza companies. There is no single mozzarella cheese
company that can supply all of PH's or PZZA's needs,
Anyway, just because Leprino
makes it, that does NOT mean the products are the same.
Ford makes cars but they are not all the same either
are they? You may drive an Escort and I could drive a
Mustang. Could be VERY different huh?
Over and Out!
I love to read all the posts here about Papa
John's. I don't think many of you know anything about the
pizza business at all, other than the numbers side of
Papa John's cheese is a product
called QLC or Quality Locked Cheese. This cheese is made
by Leprino with PJ's specs on melt, bite texture,
etc. They continue to add water to their sauce with a
spice pack. They don't use paste but use a thicker
sauce and add water and spices, so what people seem to
like it! They have a decent product, what they don't
have is a dedicated franchise community.
PJ's operators in my areas change hands every two to
three years because they know nothing about the pizza
business. They figure on making big money quickly and are
disappointed time and time again.
I have been in the
business for 18 years, I've watched the Papa John's stores
in this area (some of the first Papa John's stores
ever) do well to begin with but have declined
substantially in our markets in the last 6 yrs!
Schnatter has a great plan for HIS success but his
franchisees will continue to suffer as their projected Gross
Profits are not realized time and time again. Reports of
same store sales are misleading due to price increases
and smaller discounts. How long will it be before the
company will have to start buying stores back or closing
Thank you for taking the time out to do that. I
guess what I was looking at really wasn't the closing
price, rather watching it throughout the day and making
foolish assessments. Lo and behold - it's made a bounce
over the last few!!!!
Thanks again for the
Long on PZZA since 11/97!
Starting from 10/15/98 to the present, here are
the dates of the trading days which closed "up",
"down", or "unchanged" wherein that day's trading volume
EXCEEDED 253,454 shares.
UP Days (=
10/16, 19, 27, 28/98
11/2, 3, 6, 9, 12, 18,
12/1, 21, 22/98
DOWN Days (=
11/4, 5, 11/98
UNCHANGED Day (=
10/29/98 (Note: while, intra-day, a higher "high" as well
as a higher "low" was achieved compared with the
previous trading day, its close was
Although most recently (1/8 & 1/11) we've seen heavier
"down" days than "up" ones, I don't think its meaningful
as any harbinger. PZZA's trend is still "up" and to
do that, it takes a lot more "up" volume days than
"down" volume days.
Hope that does it for you.
2. A standard for assessing comparative "volume"
is a stock's ADV (Average Daily Volume). You will
find it on a stock's Detail Quote page here on Yahoo.
The period or term over which the "average" is taken
can vary with the provider of the data. Usually, it's
averaged over the immediately preceding 30 trading days,
but here on Yahoo, the provider is, I believe, Market
Guide (MG) and if you read the description of MG's
methodology (how MG calculates it), IMO, whoever's
responsible for authoring that description should be
summarily executed for committing an atrocity against the
language. Go read it and see if you don't agree.
I understood it, it appeared to boil down to an
average taken over the preceding 3 months (~91 calendar
days?) which, barring any market holidays (such as
occurred on Monday) would = ~65 trading days as a
PZZA's ADV is currently shown as 253,454 shares traded
What has been its recent history over
say, the past 6 months? Well, from mid-June to
mid-July, PZZA's ADV ranged in the ~141k to ~154k region
but when the Dow, S&P 500, and NASDAQ began to top
out, PZZA's ADV began to inflate to the ~250k level by
the end of August (when the markets were spiking down
to their "correction" lows).
ranged in the ~240k to 256k region for about the next 6
weeks until the markets tested their end-of-August lows
in early October and began to head toward (then) new
record heights in mid to late November. That's when
PZZA's ADV began climbing, too. From the ~250sk area to
almost the 300k heights, spending most of November in
the low 290sk region before trending lower through
the ~267k to ~253k region for December and thus far
into January of '99.
So you see, PZZA's ADV has
actually been declining in volume over the past 8 weeks,
NOT getting "heavier."
1. As to your belief
that PZZA's been "up" on low volume while "down" on
heavier volume, that's not what the record
Using the current ADV of 253,454 shares traded per day
as a delineator defining "heavier" volume, I went
back 3 months in PZZA's archival daily trading record
here on Yahoo (go to any of PZZA's charts and at the
lower right corner below the chart's various term
plots, you'll see Table. Click on daily and it'll take
you to whatever time period you're seeking that's in
I could've used the ADV
appropriate for the week screened as the arbiter of "heavier"
volume, but it was simpler and faster�to use the current
ADV and the results would've been little different,
if at all.
Looks like it'll take Part III to
activity do not appear to be borne out by the
First of all, let me say that I
am not a trader so, unless there is something
extraordinary occurring with a stock (i.e., volume in multiples
of ADV, ~10% intra-day price movement, up or down
from the prior close), I am usually not keeping a
close eye on intra-day activity.
As I understand
your contention in your posting #767, you are asking:
1. Why PZZA appears to "bounce" up on relatively low
volume and "slides" down on relatively higher
2. Why PZZA appears to be experiencing inexplicable
heavy volume (<<There is no apparent reason for
any of the heavy volume-..>>).
PZZA's price movement appears to be so "volatile"
(<<-or even the goofy swings in price that we've been
I will attempt to
respond to these three points in reverse order. My
explanation may contain information which you might already
know but my intent here is to be instructive for those
lurkers to this thread who might not be aware or
otherwise acquainted with some of this
Just as "Beauty is in the eye of the beholder.", so,
too, a perception of a stock's trading activity can be
a very subjective thing. Standards or benchmarks
have therefore been established as a means of
assessing these factors in a more objective comparative
3. In the case of "volatility" (short-term price
swings), there is a factor called, Beta. You will find a
stock's Beta listed on its Profile page here on Yahoo.
You can access that page at the upper right corner of
this message you are reading as well as from the
stock's Quote or Detail Quote pages, et al. The Beta
figure is a measure of a given stock's volatility
compared to the volatility of a broader measure of the
market, in this case, the S&P Composite Index (S&P 500).
The S&P 500's volatility is taken to be 1.00. A Beta
< 1.00 signifies a stock whose volatility is
"calmer" than the market's and, conversely, a Beta >
1.00 indicates a stock whose volatility is "jumpier"
than the market's. PZZA's Beta is currently 1.14 which
would not indicate extraordinary volatility. If you
want to see "volatility", go check out the Betas on
some of these internet stocks.
To be concluded
on Part II.
I guess that was the point I was trying to make,
but perhaps I was being too negative about it. This
price seems to like to bounce up and down. I have to
blame analysts. I blame them for the stock making large
moves up as well as down. When PZZA has gone up
significantly I think it's just analysts pumping it up.
Similarly when it is down (dump). I don't care too much
really. I'm not going anywhere for a while...