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H.J. Huneycutt » Comments » AN

  • Five Stocks Traders Are Betting Against (With Good Reason) [View article]
    How do you conclude SNS has "a lot of debt"? Their LTD appears to be fairly low --- about 4.2% of their total equity. Their liability-to-value ratio is 46%, which is relatively low by restaurant standards and most of it is "obligations under leases." Current ratio and quick ratio are bad, but they had positive free cash flows their past quarter.

    Most of their assets are real things with value (property and equipment); very little Goodwill and Intangibles on their Balance Sheet. Even after subtracting those "fake assets" (as I call them), their book value is $9.23. Then, to top it off, they are the type of restaurant that you occasionally find people writing entire pieces about on how much they long for their food; so it's not like they are any old fast-food joint.

    I'm not saying the short-term outlook is good (for any restaurant), but I don't think your assessment of the fundamentals meshes with reality on this one. There are probably better short targets out there in the restaurant sphere.


    I do agree on LNG. They have an *UGLY* balance sheet and natural gas prices are not coming back up any time soon.
    Mar 02 21:09 pm |Rating: +2 0 |Link to Comment
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