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The Wendy's Company Message Board

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  • Eggplant101 Eggplant101 Nov 30, 2009 9:08 PM Flag

    Look which BIG funds are buying new and adding.

    What a great site -- thanks! Now look at all the smart money that is fleeing WEN, it's amazing:

    Marshall Wace (classic Graham & Dodd investor)
    EOS
    Jana
    Kingdon
    Steinberg
    and lots of others I don't recognize

    sold ALL of their WEN stock! Peltz controls this thing, and he's going to suck it dry. There will be NO dividend increase. Stock repurchases? Sure: they bot back approx 9.5m shares (spending ALL of the August repurchase authorization) for more that $5/share. Now the stock is at $4. Peltz is an idiot -- he will use all of the company's money to shore up his position. Just think, a year ago he tendered for 50m shares at $4.15. The S&P 500 is up 22% from 1 year ago, and WEN is DOWN from the tender price one year ago. Peltz is an idiot, with the ego and arrogance of Saddam.

    How about that clever debt issue: sell $565m of 10% junk bond debt, and hoard the cash to earn 1% interest, and use it to buy back stock right before the stock collapses.

    Peltz is an idiot -- don't trust him with your money. The skipper on this boat is drunk.

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    • WEN will not turn out to be a repeat of Snapple - the compny Peltz bought dirt cheap and sold it at a profit.

      Usually, buyout hedge funds such as Peltz has don't hold their target company(WEN)for very long. If he can't increase the stock price, WEN will be dumped for a song. His money will be used for other targets.

      In hindsight, would it have been better if WEN not sold out - the stock price would have been higher today?

      WEN might go down in history, as a great name brand that fades away, like Sears.

      Can this company have hidden sharedholder value? Fair value is 6+ will take years.

      WEN is stuck between 3 and 4.80 (worse than pre-merger). How sad! The day traders avoid WEN cause of the tight range.

 
WEN
10.29-0.02(-0.19%)May 27 4:00 PMEDT