Comments on Dan Heil's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/dan-heil/articles http://seekingalpha.com/article/115332-wendy-s-the-best-value-menu-for-your-portfolio?source=feed#comment-653773 653773 Sun, 30 Aug 2009 16:26:13 -0400 http://seekingalpha.com/article/115332-wendy-s-the-best-value-menu-for-your-portfolio?source=feed#comment-542265 542265 Thu, 11 Jun 2009 11:49:51 -0400 http://seekingalpha.com/article/126766-sohu-s-changyou-it-s-a-perfect-world-for-chinese-internet-gaming?source=feed#comment-439584 439584 PWRD is my choice also as offering by far the best growth relative > to price-earnings ratio. I likewise will probably be selling some > around 19 though the stock would still be an appealing GARP choice > at that level. I suggest you also take a look at Linktone (http://seekingalpha.com/symbol/lton) > which I've just started to accumulate this week: powerful growth, > no debt, great chart and priced below book value.]]> Wed, 25 Mar 2009 10:56:52 -0400

On Mar 19 08:53 AM Alphameister wrote:

> PWRD is my choice also as offering by far the best growth relative
> to price-earnings ratio. I likewise will probably be selling some
> around 19 though the stock would still be an appealing GARP choice
> at that level. I suggest you also take a look at Linktone (seekingalpha.com/symbo...)
> which I've just started to accumulate this week: powerful growth,
> no debt, great chart and priced below book value.]]> http://seekingalpha.com/article/126766-sohu-s-changyou-it-s-a-perfect-world-for-chinese-internet-gaming?source=feed#comment-439159 439159 Wed, 25 Mar 2009 02:36:27 -0400 http://seekingalpha.com/article/126766-sohu-s-changyou-it-s-a-perfect-world-for-chinese-internet-gaming?source=feed#comment-434513 434513 Sat, 21 Mar 2009 13:04:34 -0400 http://seekingalpha.com/article/126766-sohu-s-changyou-it-s-a-perfect-world-for-chinese-internet-gaming?source=feed#comment-432053 432053 Thu, 19 Mar 2009 08:53:50 -0400 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-377672 377672 Thu, 05 Feb 2009 19:58:43 -0500 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-376241 376241 Wed, 04 Feb 2009 19:57:41 -0500
It's Forward Freight Agreements,
Futures, or Freight Dirivatives, and the speculating of what rates will be.

often used as a hedge by ship owners.
Go to imarex.com]]> http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-376189 376189 Wed, 04 Feb 2009 18:25:33 -0500
What is FFA?]]> http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-376093 376093 Wed, 04 Feb 2009 16:53:55 -0500 The BDI will be up again tomorrow according to FFA's, but you just never know when George Economou will drop another bombshell.
Dilution, Loan Covenants, Ship cancellations, oh my.]]> http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-375598 375598 Wed, 04 Feb 2009 12:02:24 -0500 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-375339 375339 Wed, 04 Feb 2009 09:23:53 -0500 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-375264 375264 Wed, 04 Feb 2009 08:24:41 -0500 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-375068 375068 Tue, 03 Feb 2009 23:28:53 -0500 The boss is just up to something.]]> http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-374875 374875 a decent income related trade, if you are one who believes that drys > survives is to sell june 5 puts for 1 70-80. basically, the sole > risk here is drys going bellyup, and with its very selfserving ceo, > that is not beyond the scope of possiblity. that said i took such > a position today.]]> Tue, 03 Feb 2009 17:47:21 -0500

On Feb 03 03:55 PM utahcoyote wrote:

> a decent income related trade, if you are one who believes that drys
> survives is to sell june 5 puts for 1 70-80. basically, the sole
> risk here is drys going bellyup, and with its very selfserving ceo,
> that is not beyond the scope of possiblity. that said i took such
> a position today.]]> http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-374776 374776 Tue, 03 Feb 2009 15:55:26 -0500 http://seekingalpha.com/article/118163-opportunity-in-medium-term-call-options-for-dryships?source=feed#comment-374495 374495 Tue, 03 Feb 2009 11:49:10 -0500 I still think it's headed for $2 myself.]]> http://seekingalpha.com/article/115332-wendy-s-the-best-value-menu-for-your-portfolio?source=feed#comment-359995 359995 Mon, 19 Jan 2009 12:58:24 -0500
McDonalds performance was somewhat decoupled from general market performance during the recent crash, so its stock valuation is somewhat safe. We don't know if Wendy's performance is decoupled because Wendy's stock price has been dropping consistently over the past two years.

The analyst says that the earnings growth rate of McDonalds is 9.33% per year while Wendy's is 14.3%. That looks good. However, I would argue that the McDonalds growth rate figure is more reliable then the Wendy's number because Wendy's number is based on the performance of a new menu in conjunction with a recent merger. Does that Wendy's growth rate have legs?

In order for any company to grow, they need capital. I note that Wendy's provides a dividend of about 1 cent per share. Yet even at that low level, its dividend payout ratio is 88%. Dividend payout ratios above 50% for standard equities are suggestive of capitalization issues. This raises questions about the sustainability of that reported Wendy's growth rate figure. The data seems to suggest that Wendy's should drop the minimal dividend and save their capital for growth. At this point in time, Wendy's is not a dividend investors stock, it’s a potential growth stock. If you are going for growth, why not maximize your operations for growth? So if Wendy's management thinks they are going to be substantially growing, why are they still paying that dividend?

Given that big pop on Friday, I think I would wait to see if the stock rebounds as investors take profits. Looking at Wendy's chart, it looks like there is a historical support level at about 5.5, and another at about 6.5. However, those support levels are based on the performance of its historical menu, not its new menu. As a consequence, if Wendy's price broke out of that older support level at $6.5, I would be more inclined to believe the near-term sustainability of that 14.3% growth rate.

My perception is that the general markets are going to be going sideways for most of 2009, punctuated with some periods of substantial ups and downs. I think the current economic environment favours large cap dividend earning stocks as opposed to growth stocks. I suspect few companies are going to be growing in 2009.

Disclosure: I own a small position in McDonalds and intend to sell at $65.
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