PZZA down to $30

Discussion in 'Stocks' started by toc, Nov 3, 2015.

  1. toc

    toc

    PZZA looks poised to $30-35 area

    PE of 41 vrs S&P's 22

    Below from Casey's Reasearch............(no affiliation btw)


    Yesterday, Bloomberg Business noted that investors are betting against Papa John’s stock.

    The number of shares being shorted -- a bet that the stock will fall -- has risen to 5 percent of those outstanding, near the highest level in six years, according to data compiled by Bloomberg and Markit Ltd. The investors are wagering that Papa John’s will have a tough time sustaining its lofty price-to-earnings ratio...

    E.B. Tucker agrees that Papa John’s stock is way too expensive.

    I’ve been baffled by Papa John’s for a long time. The stock price trades at 27 times free cash flow. That’s a tremendous premium for a fast food company. That’s what investors pay to own companies that produce groundbreaking cancer drugs or some other life-changing technology. It’s not the price you should pay to own a pizza chain best known for its garlic butter dipping sauce.
     
  2. The fast food stocks went mental last year, longer than a rational short could stay solvent I'd bet.
     
  3. Sotnis

    Sotnis

    Bad revenue miss. Still, tempted to buy here :)
     
  4. You'r gonna buy us a Pizza?
     
  5. Buy1Sell2

    Buy1Sell2

    There will be a short term uptrend from here. Don't let it run too long and give back profits. Ultimately this will be a sell in the existing long term downtrend.
     
  6. Buy1Sell2

    Buy1Sell2

    Still believe in this analysis.