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Jack in the Box Inc. Message Board

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  • bulletproofportfolio bulletproofportfolio Aug 4, 2010 11:29 PM Flag

    Favorable report on balance

    Uninformed? Well an uniformed slob like me sees that they missed non-GAAP earnings by .03 this Q. Being a retired securities analyst, extremely well informed and all, you would probably know that non-GAAP earnings exclude ALL of the "unusual" charges you mention. So why do you even mention that?

    As far as selling their restaurants, I actually think this is a good move on JACK's part, but why would you include those "unusual" gains in earnings? They have nothing to do with the underlying operating business and will completely disappear in about two years if everything goes according to their plan.

    Ex-gains on sales of restaurants, I calculate that JACK earned about $0.17/share this Q. Annualize that and you get $0.68 for the year, which has the share price at around 30 times what the company earns actually selling food. NO THANKS!

    But a white knight is going to come and buy out the company and save all the suckers who actually bought the shares, right? Buyout rumors are generally the last refuge of losers who've made a bad investment, but don't want to admit it. Good luck with that.

    I'll also pass on your wager, although I'm sure a random screen name on Yahoo is good for his marks...heh.

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    • Stick with MCD if you want to make a profit.

      Who would want a jack off? YUM?

      JACK to near 52-week low, then a dead-cat bounce.

      Play the swing trade. Won't hit 25 for months?


    • Once again you miss the point. By generating all that cash through sales of company units to franchisees, they are able to buyback their shares in considerable volume. Some have estimated the cap shrink could be one third of outstanding shares within three years. Hence, this obviously boosts the EPS number. They are simply downsizing JACK's stake in order to produce a steadier flow of income in the future. This is what the saavy folk are noting. But, again, a depressed price means they are more vulnerable to a takeover now. That is what happened to CKR and that is what probably happens to JACK. Don't get hung up on analyzing operating results now when the company is cleaning house and expensing all they can. Keep your eye on the ball which means the next two fiscal years.The market is a discounting mechanism, hence the shares are being bought in volume this a pretty firm price.
      Best, Big J in L.A.

    • Don't forget that he is currently 'married' to the stock, that pretty much sums up anything he has to say.

      Anyway, expect the gap to close over the next several hours/days. It has always done this before when <bad> news has hit, easy way to scalp a few $s.

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