To All:
Lurking and though I would introduce myself and add my 2 cents.
One stock I am in for numerous reasons which meets this thread criteria is BOST, Boston Chicken, a yuppy and wall street darling which never stopped growing, yet stopped exploding which was enough for the momentum players to exit and the price to drop. As with wall street evolution on stocks, after growth phase, if the company is sound and has the proper fundamantals, the value players then pick up the pieces.
The company has changed its focus from growing stores to growing earnings. Also, I believe,from reading various co announcements, the company is changing its focus from competing with Wendys/MC-D's/etc. at lunch BACK to its primary, and niche, focus of great food fast for yuppies and wannabes- this is what made it famous in its inceptions.
BOST has a P/E of 9.5
and a growth rate of 25-30%.
so PEG of .33 as of 97 and lower based on 98 projections/
I am spamming the following info:
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Tuesday August 26 9:25 AM EDT
Company Press Release
Source: Robert M. Cohen & Co.
Robert M. Cohen Initiates Coverage of Boston
Chicken; Analyst Sets Speculative Buy Rating and
$34 Price Target
GREAT NECK, N.Y., Aug. 26 /PRNewswire/ -- Robert M. Cohen & Co. initiated coverage of Boston Chicken (Nasdaq:BOST) with a speculative buy recommendation and set an 18-month price target of $34 per share.
Robert M. Cohen analyst Keith R. Bossey said that while the company has stumbled from its meteoric rise and fallen into disfavor on Wall Street, forward earnings growth projections of near 35% make the current valuation very attractive.
``Boston Chicken trades at just 11x our 1997 estimates and at a paltry 8.2x our 1998 estimates. Although earnings growth should not be re-attained until at least the fourth quarter, any signs of positive business momentum will expand these multiples. In comparison, the S&P 500 trades at 25.4x earnings and restaurant stocks trade at over
23.7x earnings,'' Bossey said.
Bossey noted that two strategy changes by management should support future earnings momentum. The company has focused on the strong concept of advertising its meals as a home meal replacement, and management's decision to return to and accentuate this concept puts the company on more solid footing. In addition, the announcement of an
expansion slow down (not discontinuation) will allow management to concentrate on building profitability at the franchisee level.
SOURCE: Robert M. Cohen & Co.
More news for referenced ticker symbols: BOST, and related industries: restaurants.
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Price and Volume
(updated Aug 22, 1997)
52-Week Low $10.625
Recent Price $12.063
52-Week High $41.50
Beta 0.80
Daily Volume
(3-month avg) 3.47M
Share-Related Items
Market
Capitalization $787.5M
Shares
Outstanding 65.3M
Float 30.7M
Dividend Information
Annual
Dividend none
Per-Share Data Book Value (Mrq) $14.90
Earnings (ttm) $1.10
Sales (ttm) $5.74
Cash (mrq) $0.04
Valuation Ratios
Price/Book(mrq) 0.81
Price/Earnings (ttm) 10.95
Price/Sales (ttm) 2.10
Income Statements
Net Income (ttm) $80.6M
Sales (ttm) $386.0M
Profitability
Profit Margin (ttm) 19%
Great peg, p/e, p/s and price/book value, trades at discount to restaurantindustry. Has already had weak hands shaken out; has bottomed out and is not moving lower as market vacillates; institutional following; and considered top quality establishmnent, and analys are starting to recommend.
Comments.
Any responses good or bad are welcome.
Stephen |
