Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Buffalo Wild Wings (BWLD) Rockets Nearly +30%
in Less than Two Months
Published:
May 26, 2008
When people think of value stocks,
most picture large, century-old companies like Coca-Cola (NYSE:
KO) with established brands, but somewhat limited growth
prospects. And, of course, such firms do indeed fall under the
value investing sphere. But keep in mind, it's a pretty big
sphere -- filled with companies of all shapes, sizes and
flavors.
As editor of StreetAuthority's
Half-Priced Stocks newsletter, my interpretation of
value is fairly simple -- encompassing any company that is
trading at a substantial discount to its fair value and offers a
measurable margin of safety. And because that fair value is
determined, in part, by a firm's future cash flow potential, it
shouldn't come as a surprise that many faster-growing companies
have been featured prominently in the newsletter, alongside the
Coca-Colas of the world.
For example, while shining the industry spotlight on casual
dining firms in April, I singled out one of my favorite players
in this field -- Buffalo Wild Wings (Nasdaq: BWLD, $31.27).
As the popular sports bar chain has expanded its footprint,
shareholders have been treated to heated growth -- sales have
doubled over the past five years and profits have more than
quadrupled.
Looking beneath the numbers, it's easy to see what's driving
that growth. Buffalo Wild Wings has posted positive same-store
sales for 20 consecutive quarters and has an eight-year streak
of increasing average weekly sales volume. The average
company-owned store is now raking in revenues exceeding $41,000
per week. And management has outlined ambitious expansion plans
to eventually double the store base to more than 1,000 units.
Yet, with the market growing concerned that rising food costs
and a slowdown in consumer spending could pinch earnings, the
shares had slipped from above $40 to just $27.50 in a matter of
months. However, my fair value calculation smoothed over the
impact of a temporary slowdown and yielded a much higher price
of $38 per share.
Just a few weeks after my initial report, the stock spiked to
above $30 after the company reported better than expected
quarterly earnings and reaffirmed its optimistic full-year
outlook. And it has continued to climb since then, eventually
touching $35 per share last week -- not far from my fair value
estimate, and nearly +30% above where it was trading less than
two months ago.
In this month's newsletter, I zero in on another company that,
like Buffalo Wild Wings, has been hard hit because of temporary
weakness in retail, but should weather this downturn just fine.
The firm is one of the world's largest specialty purveyors of
hunting and fishing gear, camping equipment, outdoor apparel and
other goods. Right now, the stock can be scooped up for little
more than book value -- not to mention a wide -18% discount to
fair value.
To read an in-depth profile of this promising company, available
only to subscribers, we invite you to try out
Half-Priced Stocks at no obligation. Please visit
this
link to learn more.
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Nathan Slaughter
StreetAuthority Staff Writer
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
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Go here to learn about Amy's simple investing strategy.
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