Donald, I've got one foot out the door here, as I am of little faith in current management. Temporary setbacks are just that, and present buying opportunities. Unfortunately, young Mr. Galvin and his mgmt. team seem to have an excuse for every shortcoming, w/ mgmt. willing to take little or no responsibility. Talk about a ship w/o a rudder!
I'm actually quite high on Wendy's at the moment. The co. is able to grow earnings in a tough sector, and do maintain a good ROC in doing so. International expansion, if handled correctly, should prove a boon, as long as the areas of expansion are not saturated ala the U.S.
Also, the co. has a great outlet in Tim Horton's, with plenty of room for expansion of this concept in the U.S. (not to mention the cross-branding potential for Wendy's stores in Canada).
Wall St. was indifferent to recent strategic plans announced by mgmt. I, for one, would be ecstatic to see mgmt. be able to consistently hit its goal of approx. 13% growth going forward. This, combined w/ share buybacks and the closing of poorly performing stores, should make WEN an attractive mid-term play, IMO.
As far as Omnicare, I can't comment as I am not familiar w/ it. In general, I'm not interested in high-PE stocks, as it takes little or nothing to knock them off of their lofty valuations in this volatile market. When combined w/ uncertainities in Medicare funding, I think a better play at this time is Invacare. |
