Comments on: The Restaurant Investor

By: The “Low Road” Taken | Thought for Food

The “Low Road” Taken | Thought for Food — Thu, 25 Aug 2011 19:49:27 +0000

[...] Max Olson has written about Biglari on his blog Futureblind.com. This entry was posted in Uncategorized and tagged Biglari Holdings, corporate governance, [...]

By: james moylan

james moylan — Thu, 21 Jul 2011 17:23:00 +0000

I have a web site where I give advise on penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I find that the best measurement of how undervalued a stock is is the price to sales ratio of a companies stock. The price to sales ratio is the market cap of a companies stock compared to the amount of sales the company does on an annual bases. A good example of a company with a low price to sales ratio is carrols restaurant group the company has a market cap of just 240 million dollars but does over 800 million dollars in annual sales the company is solidly profitable. In other words the price that the market is valuing the company at is 240 million dollars this is only one third of what the company does in annual sales 800+ million dollars. The stock currently trades at around 10.25 cents a share under the symbol {TAST} I think the stock could get to 50.00 dollars a share over the next five years. I base this on the current net profit margin of around 1.75% or 14 million dollars on sales of 800 hundred million dollars. If the companies sales were to increase by 50% or 400 million dollars to 1.2 billion dollars over the next five years’ and if the companies net profit margin were to expand from 1.75% to 5% or 60 million dollars over the next five years than if the companies stock increased in price to where it was trading at a price earnings ratio of 20 this would put the stock at 50 dollars a share. This may seem to be a somewhat optimistic scenario but not really that much’ there are many stocks that trade at much higher price earnings ratios when they become popular than 20 times earnings. I find that companies like carrols restaurant group are very rare. I also find that companies that have low price to sales ratios that are profitable or of decent quality tend to become takeover targets or get taken private by private equity firms or the management of the company’ or other companies in the same business.
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By: james moylan

james moylan — Thu, 21 Jul 2011 17:14:00 +0000

I have a web site where I give advise on penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I would like to comment MCdonald’s.. The key to making money in the stock market consistently is avoiding the most popular stocks. A good example is MCdonald’s while MCdonald may be a very solid company. I do not believe that it is anymore than a mediocre investment you could make maybe ten or twelve percent per year on your money over a ten year period which is about the average return for stocks. I know of low price stocks of decent quality that could easily appreciate at 30 to 40 percent a year over a five period without a tremendous amount of risk..
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By: Tariq

Tariq — Wed, 25 Nov 2009 16:02:41 +0000

Great stuff Max. I like to see that blogging hasn’t dissuaded you from long form writing!