First of all, I still want to mention EFUT. It continues to go up. Earnings are next week.
I have no idea whether they will surprise or not, but any temporary setbacks and/or PPS drops should be watched carefully. This stock is one you hold for the long run. It's going to be a Chinese SAP when it fully matures in my opinion. Even after tripling over the last few months, I believe it is still significantly undervalued.
While searching through American Restauraunts being traded on the public market, I ran into a stock I've never seen before or followed. PZZI. I like the risk/reward right now in PZZI. Apparently insiders do too...
The balance sheet could be better, because their assets are few - but they have no significant debt either. I like it's slow and steady positioning during the market downturn when companies like Dominoes have clearly over-leveraged. Right now, PZZI is focusing on a 2nd prototype restaurant which serves pizza buffet style. It looks so far as though this model has been very successful, and is likely to the be the model followed in the future by the company.
I live in the north, so I have no idea how the pizza tastes. Testing the product would be rather helpful.
Funny you should ask. I met Mark Schwarz of Newcastle many years ago and he is a very strong value investor and they have bought near half the stock in pzzi over the years. That said I have been watching to see whether they could turn it around and so far I see no evidence. Maybe it will turn one day, but I just don't think there is much to be gained here.
I could be wrong, but their first prototype of a new kind of buffet-style restaurant is netting a large multiple in daily revenues vs. exisiting franchises. If this new kind of set-up works, franchisees may start changing over, making themselves and the company a lot more money.
With virtually no debt, and a semi-steady cash flow being used to make stock buybacks, I think I'm going to buy some.