Well if you've got the stock in a retirement account, good for u. Had this same argument on this board when the shares were trading at around $20. The company did a dutch auction and bought back a bunch of shares. Stock is now up close to 400%, as we continue to reap the benefit of that buyback. It is not too late to do another dutch auction. They could buy back a significant amount of shares, and still keep cash on the balance sheet. Drive the pps up another 100%. I'm doubtful anyone is gonna do a lot better than compounding on what's going on here. Willing to bet there are many who have cost basis in the single digits. Doubling the price could mean going from a 1000% gain to 2000%. I'll take that over a dividend.
The company expenses stock options, so if your going to do this type of analysis you better deduct whatever they did expense since 2011. The cost of the options also plays out in the fact that more shares are outstanding thus reducing earnings per share. In hindsight, they should have bought back more shares when the price was lower as I suggested last year on this board. Now they have 40 million bucks sitting on the balance sheet which could have reduced share count significantly a year or so ago. A dividend would be a tax disaster for many of the long term holders here. I'd rather see share count reduced and eps and pps rocket than give up 40% of my money/dividend to the government. The stock option activity here is no different than in the majority of many other successful stocks, so any critique is more of a commemtary on the whhole market. What is different here is the valuation of the company. This type of growth is getting 50 to 60 times earnings elsewhere. The p/e here is well below 30 when you back out the cash.
I've noticed that too. Huge earnings growth and the stock drops on low volume...ridiculous. No one is paying attention here. With all the cash , they are an buyout target even with the shareholder rights plan in place. Just buy the company at a significant premium. There are two more quarters in which the Morrell agreement will provide significant growth. A takeover company may be able to move the headquarters out of New York to a place with lower state taxes too. Hope they are still repurchasing shares.
Ya, hard to believe. I''ve had a few 10+ baggers in other stocks, and it always gets frustrating when you start to see fools come in late and think they know what they are talking about....But this is ridiculous. Especially frustrating when there are so many other stocks with lesser prospects going for sky high p/e ratios. All I can say is if the stock were ever at 28, I would be loading up. I think the biggest mistake I made over the past few years was not buying a ton more at 22 -24 when they anounced the dutch offer.
This seeking alpha one has got to be the most brainless one yet. No clue about the smithfield agreement. Reminds me of the time I saw a cow get smashed by a train...it was just oblivious to what was going to happen up to the point it was obliterated.
Nice try. I'm averaged in at about $9 per share. Don't believe me? You can check the message board histories and find some real old posts I'm sure. Would just like to see it get some recognition and go up though.
This is not the 70s where income kept pace. Keep piling into stocks at 20 plus times earnings for 5% growth, or some other bubble inflated assets while stupid folk like me sit on the sidelines.
In n out is good and cheap, and The Habit is also good, just pricier. Lots of alternatives have been on the west coast for years, but Mcd hasn't been phased and ain't going anywhere.
I've owned this for a long time. Bought after a friend convinced me to try the McGriddle just after they first came out. I thought they sounded disgusting, but was shocked by how good they were when I gave em a try. Thought the gourmet coffee and latte plan was gonna be a mistake when they announced it, and I was dead wrong. I think I've recouped my initial investment completely with the dividends over the past 10 years. Not a big wing fan, but I'll try em out.
Understand all the posts re. the stupidity of fed policy, but what is the bottom line? If you destroy the dollar you destroy the country. In the end the populace can't absorb the cost of what is being shoved down their throats and eventually barfs it up. This is what happened in 2008, and the winners were the ones with cash on hand to scoop up fire sale bargains. I just see the same thing repeating. May be a few years, or may be tomorrow.
Been there. It is kinda weird to get to...there's a huge parking structure, and it's not really a foot traffic spot at all IMHO. May be good for workers in that series of office buildings...but it sux for anyone else.
I was thinking the same about SMG. I think sabotage is a strong word, but there is no real incentive for them to push for more growth at this point for sure. I was at Stater Bros today and noticed there were 8 different package types of Hebrew National and 5 types of Ball Park franks to 1 single slot for Nathan's. So there is potential for improvements. I also think the hurricane damages make it real difficult to figure out what eps really would have been last quarter.
I don't see any news, and nobody on Wall Street is aware of what's really going on here as evidenced by the clueless barrons and motley fool articles a few months back. If there were any awareness the stock would be trading much, much higher....there are dozens of stocks with much less growth and potential going for much higher p/e ratios.
A10 to 20% drop? Lost track of how many times I've seen one of my stocks dropped 10 to 20%. 1st bought enr after the ralston purina spinoff. Been investing a long, long time..... If you are not willing to deal with 10,20, 40% drops you should not be investing or you have too much at stake personally and are letting fear take control. .. the debt load is more about capability to pay it off if you so choose...with dependable cash flow from schick and banana boat the debt is manageable...and could be paid off 3 to 5 years imho. 1000% moves happen a lot more often then you may be aware, but u have to be willing to take some chances and not be afraid to lose money.
Not a big fan of debt myself in that I'd rather see it paid down and then buyback shares instead of the dividend. I've owned since 2009, and I was a little nervous buying back then because the debt load was way higher. That being said, there isn't much difference if you look at peers in terms of debt load. They are generating close to 600 mil a yr in income, so debt could be paid down if they really wanted to. The maturities are pretty far off too. Also, people can still afford sugar water even if the economy tanks, so I'm not really worried about them not being able to service the debt. The p/e of 15 is way low in comparison to peers even if you back out deferred revenue from the deal they made while back which helped payoff some of the debt.
Stock is overlooked by most. I also own tap and enr which I feel are undervalued. These guys are all possible buyout targets if they continue to be ignored.
I'm well aware of who made the comments on Billabong. My point is the headline is taken out of context and hyperbole. The "bbg is worthless" tells more about book value...the "what has happened", rather than the what will happen. Obviously, suitors wouldn't be fighting over a piece of a worthless brand.
I owned Burger King several years back until it was taken private. It had a p/e of about 12 when I bought it and limited debt. Now it is loaded with debt and the forward p/e is 50% premium over mcd forward p/e. private equity keeps playing this ipo scam. Buy undervalued company, sap all the cash, and borrow more and sap the cash from money borrowed...then tap the ipo market with a overvalued hyped up offering.