Tom Gardner, one of the Motley Fool founders, weighs in on SONC today in an internet article on three principles to find good stocks, focusing on the underlying ability of the company to compete successfully:
"[T]he fastest route there [to stock selection success] is to understand how companies achieve competitive greatness. What are the commercial features that help their stocks rise 10, 200, or 5,000 times in value? Here are three of my favorites.
Three principles of commercial greatness 1. Replication. The very best public companies have a replication model that drives growth indefinitely. Consider five-year market-beating chains such as Sonic (Nasdaq: SONC), BJ's Restaurants (Nasdaq: BJRI), and GameStop (NYSE: GME)."
Happy investing, and please remember charitable donations if you profit.