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Posted
Aug 04 2008, 11:00 AM
by
Todd Harrison
Rating:
Fast food enthusiasts beware the coming catastrophe of McDonald's Dollar Menu, especially the $1 double cheeseburger.
McDonalds, purveyor of fine fast food, faces a basic problem to maintain its profit margins: Raise prices or slice portions. You can bet Burger King, Wendy's and Chipotle face a similar choice.
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Posted
Jul 29 2008, 07:23 AM
by
Todd Harrison
Rating:
Government at various levels already says buckle your seatbelt, don't smoke and be sure to recycle, so it shouldn't be any surprise that the Los Angeles City Council is preparing to tell people to eat their peas.
Council members, concerned about the proliferation of fast food restaurants in a low-income area of South Los Angeles, are considering an area ban on additional fast food joints such as McDonald's, Burger King and Wendy's.
Libertarians and other cranks might ask: Is this a legitimate role for government and, by the way, where's the legal authority for such action?
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Posted
Jul 18 2008, 08:00 PM
by
Andrew Horowitz
Rating:
We are the heart of earnings season and this week's lineup is massive. As I write this, I'm looking at over 25 pages of earnings estimates on hundreds of companies presenting results in one of the toughest quarters we've seen in decades. It appears that many of the companies that have already reported have been doing a fine job of beating lowered expectations and providing a nice balance to a market that has been under siege.
This week will be no different in terms of volatility. But those companies which have been savvy enough to project estimates that they figure they can beat will have an easy time pleasing investors. Those that don't will pay a heavy price into the next cycle. Let's face it, it's a game. If played well it can provide wondrous rewards.
Here are a few companies that you may want to pay attention to.
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Posted
Nov 09 2007, 12:12 PM
by
Robert Walberg
I'm sure you've heard the phrase the best offense is a good defense, well given the offensive nature of the market over the past month -- the DJIA, S&P 500 and Nasdaq indices are down by 8.4%, 6.7% and 7.0%, respectively -- it might just be time to adopt a more defensive posture with your portfolio. How do we reduce risk, while maintaining exposure to the market? Simple, we lower our portfolio's beta.
As defined on the Investopedia web site, beta measures a stock's volatility in relation to the market. By definition, the market (the S&P 500) has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. When the market is racing to new highs, we want stocks with high betas that will outperform, but when the opposite is true -- as is the case now -- we want stocks that either move down slower than the overall market or, better yet, move in the opposite direction.
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Posted
Oct 25 2007, 02:19 PM
by
Robert Walberg
Rating:
Help me out here people. How is it that Chipotle Mexican Grill's stock can soar to new heights -- up by a gut-busting 126% over the past year -- while the rest of the casual restaurant industry is experiencing a bad case of indigestion? Now I like a one-pound burrito as much as the next guy, but there's nothing that really separates Chipotle from the rest of the not-so-fast food Mexican chains such as Qdoba Grill (owned by Jack in the Box) and Moe's Southwest Grill (operated by franchisor Focus Brands). They all use fresh ingredients at a comparable cost served in a pleasant yet unspectacular atmosphere.
Maybe it's just that American consumers are growing tired of soup and sandwiches and are merely looking for something, and some where, different to eat. That might help to explain why Chipotle is forecasting comparable same-store sales growth in the high single, low double-digit area, while Panera Bread recently lowered its guidance to under 1%. Talk about your flat bread!
Chipotle's sensational earnings growth is the principle reason for the stock's sizzling performance. Look for the stock to be red hot again tomorrow, as the company was added to the S&P MidCap 400 after Thursday's close, making a run to new high ground a good bet over the near-term.
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