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: Chris Nevil who wrote (286)	12/31/1997 1:21:00 PM
From: David Kuspa	Read Replies (1) \| Respond to of 338

A huge block sold today, pushing the intraday low to $14 1/8. I was encouraged by how quickly the bid/ask ramped back up (within minutes), so I think this was a year-end adjustment. Perhaps a mutual fund sold to offset profit or loss on another issue. Remember, this stock was at $8 7/8 at the beginning of the year, so it still was a healthy gain that could be used to offset many other tragedies that have happened in good stocks over the past several months. Just a guess, of course. I've been saying for some time that FM is undervalued; that goes even more so now. IMO, FM will begin to inch back up soon, unless we're entering a bear market. I've been buying a little more everytime it drops below $15 and selling a little bit when it goes over $17. According to First Call, there have been no revisions upwards or downwards from the $0.27 mean earnings estimate for next quarter; recommendation is 1.3 vs. 2.4 for the industry average (1.0 being the strongest buy); 1998 PE is 13.2 vs. 17.49 for the industry average; 1998 PEG is .66 vs. 1.17 for the industry average. FM is still relatively unnoticed, with a float of only 26 million shares. They haven't been announcing the spectacular sales gains they had last year when they were struggling to rebuild from the food poisonings, so they've probably slipped back off the radar, IMO. However, FM will still undergo strong growth and continue to pay down its debt. We should get a typical run up sometime before the next earnings release on February 6th. Hang in there! As always, do your own research, D. Kuspa

To: Chris Nevil who wrote (286)	1/21/1998 4:34:00 PM
From: David Kuspa	Read Replies (1) \| Respond to of 338

FM finally broke though some near-term resistance, up 7/16 to $16 3/8 today. This was a very strong move on a day when the market was down. Yesterday, we had two large block trades (several hundred thousand each); today we had a 250,000 trade. It looks like the selling might be over and we're back in a period of accumulation. If this year's 1st quarter ends on the same date as in '97, Jan. 19th, then it's possible that good news is just now leaking out from the quarterly numbers. Ok, so it's not supposed to happen, but we all know it still does. These large block trades and moves to the upside started on the first day the market was open after the close of the quarter. The other possibility is that there are some developments on the lawsuit with Vons, and we're not hearing about it. They were supposed to go back to court after this most recent delay sometime at the end of this month, I believe. Either way, we'll probably get a continued boost from the typical pre-earnings release rally. Earnings should be coming out by February 6th or thereabouts. D. Kuspa