Foodmaker (Jack-in-the-Box Restaurants) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Foodmaker (Jack-in-the-Box Restaurants)

FM 27.19

0.0%

Jan 8 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Arnie Doolittle who wrote (75)	5/9/1997 9:41:00 AM
From: David Kuspa	of 338

Arnie, yesterday's action was disappointing to say the least. Do you think investors/traders were scared away by the drop in revenues due to the reduction of very low-profit distribution sales? I thought earnings were all that really mattered, but perhaps traders are focusing on revenue growth. Or are they worried about the sequential drop in earnings from $0.23 last quarter and just can't easily see the big picture? Also, I suppose the debt is enough to sour some potential investors. Still, FM is close to DOUBLING its earnings this year over last and will probably achieve that goal in the next quarter or two. If this 2Q was their historically worst quarter, then they should be able to achieve upwards of $0.25 the next 2 quarters with same store sales growing 7.8% and the number of new stores increasing as well. I think $0.81 for FY97 is very conservative and is at the low end of FM's potential. That's a PE of around 15 based on a share price of $12, which I think means FM is clearly still undervalued. With the 2 best quarters coming up, and a potential settlement or win from the Vons suit in July, I'm going to make a case for some of my friends to buy FM now. Many of them know I've done well since getting into the issue in the $5 range, but I think there's still room for them to enjoy some nice returns as well. Since it didn't pop up to 13 or so yesterday, which is what I expected, they can still get in while FM is relatively cheap. D. Kuspa

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next