Seeking Alpha

Potbelly continues falling on Leon Cooperman mention

  • Potbelly (PBPB -3.1%) shares continue their descent and are now down 25% from highs notched on IPO day ($33.90) when the stock more than doubled after pricing at $14.
  • The possible cause: Leon Cooperman named Potbelly, at "100 and something times earnings," one of the "pockets of market valuation that are silly," in a segment earlier today on CNBC.
  • Although Potbelly's 2012 P/E ratio stands at ~30, an adjustment for a one-off, non-cash tax benefit of $16.9M recognized that year leads to a much frothier 2012 P/E of ~100. (S-1)
Comments (4)
  • Akram's Razor
    , contributor
    Comments (982) | Send Message
     
    It's a $6 stock trading at 25. That's how stupid the ipo was. And half the proceeds paid out a one time dividend while the other half is paying off a revolver. Total raping.
    15 Oct 2013, 11:57 AM Reply Like
  • jojokah
    , contributor
    Comments (16) | Send Message
     
    What would you say about noodles ? Roughly same revenue in 2012 but twice the market cap ....

     

    EV/EBITDA is roughly 20x 2012 numbers so if you incorporate the growth the 2014 numbers are much more reasonable.
    15 Oct 2013, 12:29 PM Reply Like
  • Jack Hutchison
    , contributor
    Comments (336) | Send Message
     
    Potbelly makes a good meatball sandwich, but the stock gives me indigestion.
    15 Oct 2013, 03:33 PM Reply Like
  • saepst
    , contributor
    Comment (1) | Send Message
     
    It is hot, but the lack of value will be priced in and it will be worth a look in a few months. I like it under 20. Remember it's a growth stock and they need to prove their growth power, which I think they will at some point, even if only for a couple years. At under 20 I think your getting in close enough to the bottom.
    17 Oct 2013, 12:36 PM Reply Like
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