Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: David Kuspa who wrote (241)	11/5/1997 3:11:00 PM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 338

David, I expect FM to exceed its all time high in February. Historically FM has pulled back this time of year and this year is no exception, followed by new highs in February. I see no fundo reason for that to change now. I have not taken possible future debt paydowns into my calculations but it's obvious that FM plans to continue the reduction of longterm debt. I see 25 as a reasonable price target in 1998. Institutions recognize FM's fundo turnaround and love companies like this that keep crankin' on and don't have negative surprises. I could see FM adding 125-150 new stores soon so that offers additional potential future revenue punch. And what would happen if FM decided to expand geographically? A win over Vons/Safeway would pave the way for mega-debt reduction and aggressive market expansion in new areas. I know that I sound like a broken record on this next point, but like a broken clock, at some point I'll be right: Value pricing, while remaining in some form, will abate somewhat and the Jumbo Jack's discounted price will jump. Remember, a 10 cent Jumbo Jack price increase translates into a 20 cent per share increase in earnings. Arnie Arnie