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History:
<I am a retired security analyst who followed the restaurant, lodging and gaming industries for many years. I post mostly on the BWLD board, but follow about 30 companies in the restaurant industry. I have determined that JACK (Jack in the Box) has about a 6 to 1 reward risk ratio at a current price of $20. This jumped out at me last night doing my spreadsheet and I thought I would share such a powerful idea. Consensus est. for calendar 2009 is $2.27 which means it now sells for 8.8X this year's earnings. (They report a Sept. fiscal year) Long term JACK is expected to grow 11 to 12% so the PEG is good as well. I believe it represents sheer value in here, and my analysis is quite in depth determining this possibility. I suspect the stock will not crack 19. on the downside, at least not by much, and 26.+ looks entirely feasible one year out given any improvement in consumer sentiment. In my view this is a sound 30% return with minimal if any downside risk. Too much going for this company longterm! My very best to you, all growth investors, from a value guy who has been around the block. Big J in L.A. >
And now,a few months later, the stock price has "groan" to 18.95 at today's close. Perhaps you see a longer time horizon as a value investor.
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