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.
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.
I don't believe Peltz will hold WEN for a short time and dump it. He may do that with some minority stock holdings in other publicly traded companies, but I think he will hold onto WEN, just as he has held onto Arby's since 1993. Peltz held Snapple for 3 years and then sold it for almost 5 times what he paid for it. I won't complain if he can do the same thing with WEN.