"I think the better trade is to short the poorly hedged restaurants, Najarian says. It seems to me that both Bob Evans [BOBE 34.12 0.03 (+0.09%%) ] and Buffalo Wild Wings [BWLD 32.70 -0.24 (-0.73%%) ] fall into that category."
Does anyone know the track record of this guys recommendations from Fast Money? I am thinking it is time to sell and rebuy below $30 again. IMO
To clarify, this was John Najarian... he made the comment on Closing Bell a couple days back. His premise was the thought that pork and beef prices would rise in the out months because of the mass slaughterings that are going on that are adding supply to the meat market at the moment, but will likely cause shortages and price spikes down the road...
He said that companies such as BOBE haven't hedged their purchases and could be susceptible to those price spikes and cause some margin pressures. Note in the quote, which is accurate to my memory, that he says that "the better trade"... this was relative to another trade that Dylan Rattigan had offered which I think was going long the meat producers such as Smithfield...
He said negative cash flow, Hotel, Restaurant CEOs Worry About Slowing Demand Topics:Stock Market | Mergers & Acquisitions | | 04 Jun 2008 | 11:21 AM ET Font size: The housing crisis and soaring energy prices are a concern for the hotel and restaurant industries, and CEOs are already feeling the effects.
With home values decreasing and gasoline around $4
“We’re starting to see the middle of the country get a little bit soft, the coasts are still holding up for us…but it’s problematic,” said Tisch. “It will definitely have an impact on travel and tourism, especially in this country.”