Hey Philip,
I've owned PZZA for a while--and am not happy that it has gone nowhere since last year. Anyway, it appears to be in what I call a "natural correction"---where the stock bases while earnings catch up to the price. I've noticed that when stocks break out of natural corrections, they can really move. When will it break out? I wish I knew.
Anyway, here are my observations:
PZZA makes the best PZZA I know of--and everyone on campus here agrees! We have a PizzaHut in the center of campus, but nobody eats there (well, thei breadsticks sell OK). There is a PapaJohn about a mile away--all day and all night (until 2:00 AM) their delivery cars are everywhere you look! PZZA's Pizzas are selling like hotcakes!
PZZA hasn't even penetrated the west coast. Still lots of growth potential there.
On the other hand, just look at the volume....PZZA has very little interest/support/momentum at this point. It's like they forgot about it. No brokerage firms are touting the stock, and all the momentum players have gone elsewhere. That's probably good, eventually, because it can't be any more uninteresting than now. IMO, we need some sort of catalyst to spark some interest in the stock. The last three earnings reports didn't have much of an effect.
Do you know which brokerage firms cover PZZA? All I know about is Montgomery, but they've been pretty quiet.
Sal Habash |
