ing_rivera's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/84376/comments http://seekingalpha.com/article/74260-why-i-traded-petro-canada-for-husky-energy?source=feed#comment-441869 441869 Fri, 27 Mar 2009 01:15:45 -0400 http://seekingalpha.com/article/66159-burger-king-having-it-their-way?source=feed#comment-379979 379979
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.

]]> Sun, 08 Feb 2009 12:41:39 -0500
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.

]]> http://seekingalpha.com/article/74621-should-you-put-your-eggs-in-cal-maine-s-basket?source=feed#comment-371571 371571 Fri, 30 Jan 2009 17:52:44 -0500 http://seekingalpha.com/article/36844-sanderson-farms-modest-upside-possible-short-squeeze?source=feed#comment-371329 371329
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.]]> Fri, 30 Jan 2009 14:05:14 -0500
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.]]> http://seekingalpha.com/article/114176-expect-meat-consumption-to-rise-for-smithfield-and-tyson?source=feed#comment-354998 354998
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.]]> Tue, 13 Jan 2009 19:07:11 -0500
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.]]> http://seekingalpha.com/article/107786-is-shift-away-from-supermarkets-restaurants-permanent?source=feed#comment-352021 352021
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.]]> Sat, 10 Jan 2009 21:56:45 -0500
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.]]> http://seekingalpha.com/article/54275-is-altria-s-moat-wide-enough-now?source=feed#comment-273171 273171 Fri, 03 Oct 2008 21:14:50 -0400 http://seekingalpha.com/article/84392-phil-fisher-on-profit-margins?source=feed#comment-269282 269282
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!)]]> Tue, 30 Sep 2008 01:05:05 -0400
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!)]]> http://seekingalpha.com/article/37217-jones-soda-the-long-case-and-a-threat-to-coke-and-pepsi?source=feed#comment-260352 260352
Can you create Pepsi? Probably not, then buy it when it's at 15Pe]]> Sat, 20 Sep 2008 22:00:36 -0400
Can you create Pepsi? Probably not, then buy it when it's at 15Pe]]> http://seekingalpha.com/article/93407-anyone-want-a-cheap-coca-cola?source=feed#comment-244017 244017
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%


]]> Tue, 02 Sep 2008 15:22:12 -0400
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%


]]> http://seekingalpha.com/article/25459-when-to-sell-coca-cola?source=feed#comment-231670 231670
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.]]> Fri, 15 Aug 2008 20:54:40 -0400
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.]]> http://seekingalpha.com/article/77688-treat-yourself-to-tootsie-roll-industries?source=feed#comment-227290 227290
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.]]> Sun, 10 Aug 2008 16:46:26 -0400
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.]]> http://seekingalpha.com/article/25459-when-to-sell-coca-cola?source=feed#comment-177060 177060
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.

]]> Fri, 30 May 2008 19:52:46 -0400
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.

]]> http://seekingalpha.com/article/37383-covestor-and-vestopia-winners-and-losers-from-peer-to-peer-investing?source=feed#comment-89948 89948 Thu, 28 Jun 2007 20:37:52 -0400 http://seekingalpha.com/article/33149-american-express-watch-the-dividend?source=feed#comment-87568 87568
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%.]]> Sat, 02 Jun 2007 17:09:11 -0400
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%.]]>