Today's news and the new loan was something Arco has been working on for some time according to their 3Q conference call. Is Libor + 400 Bps really that bad for them? Why is the stock tanking today on this news. I assumed it would be a positive development.
If youve bought McDonalds in the past 3 years you are a HUGE LOSER.....The market has outperformed Mcdonalds by what? 50% in that time? Wendy's has been up 90% YTD, burger king at all time highs...what about MCD? hasnt moved. People come to ARCO now because at this point, it is a much better investment with Brazil hopefully turning around, than McDonalds with global falling SSS.
I really don't think you have a sound understanding of why companies take the franchise route over company owned stores. McDonalds has a franchise model and they have a 100 bn market cap with a 3% dividend. Krispy Kreme switched from a company store model to franchise and now have regained profitability with the stock up 300% in the past 3 years. Of course revenue won't grow when transitioning to a franchise model....its like saying you will own less assets by selling some of your assets.
It seems the whole world views Cristina as a disaster. At least Chavez had some porponents, but Kirchner everybody hates. Why does she still get 45% or whatever approval rating? Does the 25% inflation rate not hurt? Do people tolerate controls over newspapers and such? Do the poor think she is the answer economically? Has socialism lost any popularity with the way Europe turned out?
how long have you held? its been about 2 years now for me. 5% declines off no news and no approaching earnings reports havn't happened yet.
my bad. no need to be rude. guess its an internet thing. but 5-6% SSS is still the highest in restaurant industry. and negative EPS to positive EPS is infinite growth. 7c per share to what? 14 c per share the following year would be another 100%...
where in the world are you getting 5-6% growth? are you talking about SSS growth? if you are 5-6% sss would happen to be the highest in the entire restaurant industry. clearly u know nothing about jmba and the entire restaurant sector.
If you want to hedge against the Market, why not hedge against the index with the short ETFs. Like (SP) and (SPUX) Ultra short S&P 500. Short Russell 2000 (RWM)
Dude. I'm long and im not here to bash, as i think this is a very risky play on both sides. It could very well go down. I just think there are such better stocks to short if you havnt shorted in a decade. They are buying Sealy which just 2 days ago was cleared by the Anti-trust commission and will push their expensive overpriced beds in Sealy stores soon. There are many many more overpriced stocks that dont have this kind of growth opportunity. You could be right... imitation memory foam is a better deal for pillows/mattresses.
Sentiment: Strong Buy
Actually that is completely unfair. Blame the market at the time for craving emerging market consumption stocks. If you look back ARCOs management believed they should IPO between 13-15$ per share, and that was in Brazils boom time. Because of all the people in the US that wanted emerging exposure, its first day of trading already brought it to 21.
Brazil has since become the dog of emerging growth with only 1% GDP growth this year, and the Real is now valued at 2.05 compared to 1.6 at the time.
it makes sense the stock is trading in the high 12s and possibly could rebound to 15
also where are u getting 247? website says 245 up from 244 last time i checked. was it higher before and they closed 2 more? im getting very uneasy with the volume and decline