Ackman is going back to his roots looking to find beat up companies he see's value in. I was curious why CMG went from $396 to $425 and fell back down to $407 on Friday. I was too busy to notice because Facebook and BABA were rocking our worlds. If you own CMG, I hope this gives you a long term spike instead of these short run pops.
Yes, his attitude and unwillingness to accept he's wrong would not make me feel confident in his skills to manage my money. How can we take advantage of all the money his fund has to absorb shares that were under a very good Short Attack? We can play the Weekly or buy more time to see where this goes. After BWLD released their earnings CNBC announced a hedge fund activist was absorbing shares, I bought some (stock was $145-$148) and eventually hit $170 so let's make some money my friends! BLOX has been getting yelled at by another activist hedge fund that's demanding they sell the company or do something. BLOX had a decent earnings report, with their report plus word the hedge fund is pushing for a sale its making new 52 week highs over the last few sessions.
Its all about whether this is a short-term hicup in the business or if there is long-term impairment in the business as a result of the food issues. I'm willing to bet he is right that this is short-term. I mean, they had a bunch of food issues in 2008/2009 and the stock still soared afterwards. Its worse this time but thats why the stock got killed
Don't forget he saw value in VRX and upped his ante....At the moment he is punch drunk, string of bad bets VRX, HLF....
The day CMG drops the "C" word, (China), shorts are going to be annihilated on this one. For that reason only, I would never be short CMG. Traffic is still way down though, at least from what I have seen. Employee costs are very high. Other than the threat of the "Big C", it would be a great short anywhere around these levels. Forward PE of 105. Uh uh. I think it goes lower, Ackman be damned.
Ohhh, the plot thickens here. Was doing a little more research. I had no idea Ackman held a big stake in QSR (Restaurant Brands Intl). They operate Burger King and Tim Hortons. I actually have followed this one for awhile. They just announced a master franchise plan for the U.K. on 8/31. Its a big deal. Not sure if the Brits (care to weigh in here?) will embrace it like the Canadians do... I never see them busy here in the U.S. and BK drives top line revenue by specials on nasty food. Think Whopperito's. But not the point. ... Ackman is obviously thinking globally for these fast food deals. CMG has no real presence to speak of in Canada (like 10 stores). Obviously Ackman likes Canada, where there are four Tim Hortons on every street corner. Chipoltes Canada? Hmmmm. I think we are going to see some serious momentum to the upside form here. Shorts are gonna get screwed tomorrow. QSR on the other hand... maybe Ackman will dump it. His fund needs to be diversified, too much industry exposure now with CMG. QSR... Its at an all-time high ($46.50). For no good reason. BK sucks and Tim Horton just never caught on here. QSR is a screaming short. IMO that is. Thats the play. -vz
The Chinese did not really take a huge liking to YUM, their almost done selling off their division. Now rumors that 3G might by YUM's US Brand are making the Dow Jones and Market Watch news today. Its closing well late, YUM is a stock you buy before the earnings and ride up and than sell once it starts to fade, like STZ.
if you think this is not a hedge position on ackman good luck ....he's making money already by killing theta