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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (56107)	9/26/2015 10:20:40 PM
From: E_K_S	Respond to of 78748

Re: Jack in the Box Inc. (NASDAQ: JACK) Good Times Restaurants Inc. (NASDAQ: GTIM) Armanino Foods of Distinction Inc. (AMNF) Don't Buy Chipotle, Buy This Competitor's Stock For Higher Growth And A Dividend Chipotle stock is expensive, not just in isolation, but especially considering its slowing growth this year. Its slowdown is expected to last at least through the remainder of 2015. This is problematic because Chipotle trades for 45 times earnings. By contrast, Jack In The Box is cheaper, and its Qdoba brand is growing faster than Chipotle. Jack In The Box may be the better pick in the space. ---------------------------------------------------------- Good Times Restaurants - A Tasty Buy I started buying GTIM as a GARP stock 11/4/2013 at $2.61/share. I recently added shares 8/19/2015 at $6.72/share. I sold some shares in 2014 and a few in 2015 @ $9.92/share but still own 50% of my original position. This is my only stock in the restaurant space (I am looking a LOCO as a possible future value pick). If/when these stocks become a value Buy, their business is off and/or losing money and are difficult to turn around. I had owned SWRL as a value Buy (bought at BV) but was very lucky to to exit my position w/ a small gain. LOCO was a candidate Buy but when their company owned same store sales actually declined, I avoided buying a small starter position. How could the franchise store grow if the company can not grow their company owned stores? For now, I will hold GTIM and maybe get another double out of it. My position is small so it will never really move the needle in my portfolio. ----------------------------------------------------------------------- I have had good success w/ small/micro cap family owned companies. Armanino Foods of Distinction Inc. (AMNF) is one of my biggest gainers w/ Buys in 10/2010 at $0.65/share. The company continues to perform and pays a nice dividend (yielding almost 4%). It's a 3 bagger now and I will continue to hold and collect the dividend. AMNF has made it into my No. 9 position in the portfolio. The SA article below details their history and performance. Why Armanino Can't Be In My Portfolio (check out the comments in the SA article. A lot of happy shareholders. . . What's not to like about this company?) From the comments section of the SA article: Its a business model I can understand, making a product that is not likely to go out of fashion. ROE of over 40%, 11.5% annual growth, more cash than total liabilities, and 3.3% dividend yield at current prices. Conservatively managed, with directors who hold sufficient shares to have interests closely aligned to those of other shareholders. I do see their exit plan as the sale of their manufacturing/distribution business to a larger company. They may expand w/ an East coast facility but that becomes difficult to manage and operate. Maybe a JV partner and possible buy out. AMNF is shareholder friendly so I continue to hold my position. EKS