Tony,
Originally I invested, based upon there numbers, before we discovered they were phoney numbers. In addition, my family loved the place, along with many others we knew. So when I discovered the numbers where phoney, I figured they could turn it around, because their stores are doing very well, as far as I could see.
There in store numbers, on examination though, even when the stores look good to me, were not good. They blamed it on low profit margin lunch item menu and some mistakes in there practices. They also blamed it on overexpansion too quickly. So they touted the removal of the low money makers, a new menu which would come out with higher profit margin items, and some type correction to their mis-management, the restructuring of the company.
So I thought with the new changes being implemented, even know there numbers looked horrible, and there product being so hot in the past, long term they could get by the management mistakes.
But this is where I made my big mistake. I invested on the feeling they could turn it around by what I saw in my limited market, and the popularity I saw in their product. And the potential takeover with Burger King also played a large role in why I hung around. Even though the price dropped like a rock, there were spikes once in a while, a rumor here and there, which always kept me around. My second big mistake.
I was way to emotional on this one, thinking a turnaround or a takeover was imminent. That's where I failed!
Steve |
