>My apologies.
Accepted....after all, I am a King.
> But don't you suspect that the fools lulled you into holding it?
Impossible, I never heard their commentary on it.
>I mean, a 45% gain in 6 months, and a price/sales ratio of 6.0 for a restaurant stock, and you didn't take some chips off the table?
Here's my quick and dirty analysis of RAIN that I sent to a private stock group that I participate in:
"I spent this morning reviewing all the numbers and if it were not for my NEVER AVERAGE DOWN RULE, I would be buying in here. Even with today's downgrades, EPS growth is at least 30% per year. Based on 1998 @ $1.30, PE is 14. 1999 estimates are $2.00, so assigning even a 20 PE for 1999 puts the stock at $40.00 in 12-24 months. Then there is the market cap argument, that Planet Hollywood's market cap values 50 theme restaurants at $1.2B. RAIN has 14 now, plans on 50-100 in next 5-7 years. RAIN's market cap as of today is about $350M. Then there is the issue of debt. What debt you say? Exactly....no debt!
"On the other hand, I'm trying not to fall in love with any one stock, anymore. So I'm neither a BUYER nor a SELLER in here. My NEVER AVERAGE DOWN RULE lifts around 24, will reevaluate when and if we get there."
Allan,
King of France |
