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Why I Traded Petro-Canada for Husky Energy

IMO is better.

Burger King: Having it Their Way

McDonalds vs. Burger King

McDonalds 10 times as big, twice BK's profit margins, half BK's debt to income ratio and trading at a cheaper pe than BK!!!!

The market is insane and not rational, really a rational person(market) clearly knows that MCD is worth much more than BK.

Should You Put Your Eggs in Cal-Maine's Basket?

The author is right CALM won't make more than 8.5% on equity going forward, 12% with good luck, I won't pay more than 14 for it.

Sanderson Farms: Modest Upside, Possible Short Squeeze

Low debt, focus and great management (specially the CFO which started in 1998 and has turned things around dramatically) in a very fragmented industry, gives Sanderson a competitive advantage which have allowed them to perform better than its peers in the last couple of years, returning around 5% better on equity. Their fair value is $40, I'll buy for $24 at 0.6 their value to assure a 50% year over year return.

The author was right on his 42 number but at the end he said 55 which is too much and was based on increased market share and increase per capita consumption....well first Tyson is a great competitor and won't allow those share gains so easily, second people won't eat more chicken, beef, pizza or whatever next year...well at least I won't do you? Food habits are pretty stable.

Expect Meat Consumption to Rise for Smithfield and Tyson

SFD and TSN, this year 2008, for the first time in the last 10 years traded below their tangible equity, it was about time! From that point they had jumped over a 100% already, approximately to their intrinsic value or a bit above it.

The stock market just follow business economics under the long term, the economic rule that apply to both of these is "businesses in perfect competition earn zero economic profit in the long term" therefore they can't be worth more than their tangible equity. SFD and TSN are big and might have a competitive advantage which makes them more valuable but I doubt is much more than twice their tangible equity, since they operate in commodity industries.

Is Shift Away from Supermarkets, Restaurants Permanent?

Hi Judy, people would eat out in restaurants forever just like they have always do, so is not permanent.

People needs to go to restaurants for birthdays, to take out girlfriend, family on friday night,etc.

The demand setback is temporary and normal, it will happen every now and then. The problem is the supply there's too many and there will always be too many since is so easy to enter to the industry. So many PFCB,DRI,CAKE,LNY,CBRL... and pop restaurants, and hundreds others. Still DRI is the largest and have the infrastructure and market power to have above market returns.

Is Altria's Moat Wide Enough Now?

I think Altria has a huge moat, one of the biggest I can think of. Smokers preference for Marlboro is overwheming and they won't smoke anything else. I smoke Marlboro, my siblings do too, my roomate, my officemates and I assure you that we won't smoke Camel, Winston or any other brand no matter how cheap they are relative to Marlboro. If someone gives me a gift and is a pack of another brand of cigarrettes, I will throw it away and still pay $6 (retail price in AZ) for a Marlboro Light's pack.

Phil Fisher on Profit Margins

Amazing article Joe. Very few articles are worthwhile to read, (read my comments in other seeking alpha articles), but this one is excellent.

Low profit margins=Trouble
Except when bought at the right time in which you can make spectacular returns (there's a little problem thou...is impossible to buy at the right time so stick with high margins companies!)

Jones Soda: The Long Case, and a Threat to Coke and Pepsi

If you have millions, can you construct a plant, create various sodas and start selling them? If the answer is yes, then why would you pay more than book value($1.15) for Jones Soda, when you can do it yourself?

Can you create Pepsi? Probably not, then buy it when it's at 15Pe

Anyone Want a Cheap Coca-Cola?

Ko valuation:

Operating Income After Tax Per Share: $2.36
Cash + Investments - LT Debt Per Share: $7
Tangible capital: $0
Earnings future growth = Gdp growth: 6%
Value = $69 assuming it grows 6%
Value = $57 assuming it grows 5%

When to Sell: Coca-Cola

Dividend growth investor my intention wasn't to be rude, I apologize if you interpreted it that way. I will rephrase my words from now on.

What I wanted to say is that MO can't have same enterprise value as KO, since demand for KO (and beverages in general) is increasing and for MO (and for tobacco) declining and the beverage industry is not oversupply so KO has better economics and would demand a higher enterprise value than MO.

That's why KO had a higher return than MO since the day that the article was posted Jan 30, 2007.

Todd Su the article was posted in 2007 not in 1998. In 1998 MO was definitely the best option since KO was trading at over 40 PE.

Treat Yourself to Tootsie Roll Industries

The Gordons hasn't done anything for the last 10 years, ROE is even much less than it was 10 years ago. I agree they're conservative but they're not able.

Hersheys on the other hand doubled their earnings the last 10 years while increasing ROE from 30% to 80%, that's what I call a great able management.

When to Sell: Coca-Cola

Whoever reads this don't pay attention to it. Coke appreciated 20% the following year after this report was written against a 13% decline of Altria (Marlboro).

Why? Both companies were trading about the same PE if you add cash and investments and substract debt. But unit volume growth for Altria was negative and for Coke +4%.

Does it make sense to you to pay the same for a company that is declining against another one that is increasing when both have huge returns on capital (such that little or no money is needed to achieve growth)? Ask yourself.

Covestor and VesTopia: Winners and Losers from Peer to Peer Investing

This is the most absurd idea that I've heard.

American Express: Watch the Dividend

You're right Alan I am also shocked to read such a misleading article too. I am also shocked on how a good website like SeekingAlpha let people without knowledge in business financials like the writer "Gutwoski" post an article here.

Like you said repurchases also count as dividend. Actually if the stock is selling below fair value, repurchases are better since owners are getting dollars for cents, in this case is better to increase your ownership by repurchases done by management than by receiving the dividends and buying the stock yourself because of tax efficiencies.

Based on AXP last repurchases, dividends and price at 65 their yield is a hefty 6%.