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Famous Dave's of America Inc. Message Board

  • minubird minubird Dec 27, 2009 7:37 PM Flag

    DAVE is a short term buy here

    Of all the stocks I've searched through today DAVE looks like a winner short term. Not much upside graphically, but it does have some room to move to the upside. Possibly a buck in the share price. A good time to pick up a few shares IMO.

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    • I agree with that. With a forward PE of just over 8, I see very little downside to this stock. And when you see very little downside, that's usually a good sign that a run up in price could be just around the corner. Not only that, but I like the fact that DAVE paid off $10M in debt this year (over 30%), which makes a PE of 8 even more attractive. If this was a debt ridden company, then I'd have hesitations, but given where there debt levels are at, it screams a strong buy to me in the short term.

      At the end of the day, this is a very small cap stock without a lot of following, which means it can create short term opportunities. It also doesn't help that their trailing PE is around 18, and we should get a boost with 4th quarter earnings, as it should lyimprove the trailing PE as well.

      I bought in a decent chunk of DAVE when it fell below $5.70, as I do see a lot of upside here.

    • I think fair price is 6.80, but the franchise issues are dragging it down. Not buying anything over 5.50 until things smooth out. Acquiring these stores will be nice (assuming they run them well and there aren't underlying problems), but I would still like to see them polish off that buyback before the stock price gets over 7.

      Also hope O'Donnell holds off on any more cost savings. Give it a rest. Quality please.

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