What are you buying today?

[gfp]

I never post on this thread but I will today.  I am buying JACK shares here at $1 Billion market cap with all of the negativity surrounding the California fast food minimum wage law and challenging times for restaurants in general (and a horrible chart breaking down to new lows).  I actually think Darrin Harris is a very good manager and JACK is back to their share-retirement ways (the long term record of share retirement is very good, it was paused for a bit following the Del Taco acquisition).  Refranchising company owned restaurants frees up capital for share repurchases.  I would hope they increase repurchases, but even at the recent $25 million per quarter you can take out 10% of shares a year and pay your 3.3% dividend on top of that.  Earnings are next week.  Similar negativity resulted in a short-covering freak out in El Pollo Loco recently, which has an even heavier weighting to California.  

[Spekulatius]

6 hours ago, gfp said:

I never post on this thread but I will today.  I am buying JACK shares here at $1 Billion market cap with all of the negativity surrounding the California fast food minimum wage law and challenging times for restaurants in general (and a horrible chart breaking down to new lows).  I actually think Darrin Harris is a very good manager and JACK is back to their share-retirement ways (the long term record of share retirement is very good, it was paused for a bit following the Del Taco acquisition).  Refranchising company owned restaurants frees up capital for share repurchases.  I would hope they increase repurchases, but even at the recent $25 million per quarter you can take out 10% of shares a year and pay your 3.3% dividend on top of that.  Earnings are next week.  Similar negativity resulted in a short-covering freak out in El Pollo Loco recently, which has an even heavier weighting to California.  

@gfp I have been tracking JACK but what keeps me away is the relatively large leverage. I think the issues round the CA fast food minimum wage can be overcome, but I have an aversion against high leverage and that kept me away from buying JACk. I would love to hear your perspective on this issue.

[gfp]

12 hours ago, Spekulatius said:

@gfp I have been tracking JACK but what keeps me away is the relatively large leverage. I think the issues round the CA fast food minimum wage can be overcome, but I have an aversion against high leverage and that kept me away from buying JACk. I would love to hear your perspective on this issue.

 

I like how the debt is structured and termed out.  Fixed rate at a very attractive rate.  First maturity is $268m in 2026.  This visual is helpful to get comfortable with the debt -

 

[DooDiligence]

On 5/10/2024 at 12:07 PM, gfp said:

I never post on this thread but I will today.  I am buying JACK shares here at $1 Billion market cap with all of the negativity surrounding the California fast food minimum wage law and challenging times for restaurants in general (and a horrible chart breaking down to new lows).  I actually think Darrin Harris is a very good manager and JACK is back to their share-retirement ways (the long term record of share retirement is very good, it was paused for a bit following the Del Taco acquisition).  Refranchising company owned restaurants frees up capital for share repurchases.  I would hope they increase repurchases, but even at the recent $25 million per quarter you can take out 10% of shares a year and pay your 3.3% dividend on top of that.  Earnings are next week.  Similar negativity resulted in a short-covering freak out in El Pollo Loco recently, which has an even heavier weighting to California.  

 

I own Dominos and am hesitant to even look at anything else in QSR but I'm all ears, thanks.

I like their salty advertising. Anyone eat there? Comments?

 

In the early stages of a big investment in POS to integrate with 3P's, and automation technology for productivity. Growing digital sales. Comma's are not important. Making money for franchisees is. Speaking of which, with the franchisee problems settled, management expects 4% unit growth to 2025 and wants to be open in 40 states by 2030. We might even get one here.

 

https://www.fox35orlando.com/news/jack-in-the-box-orlando#

 

Also, franchisee's are onboard with re-imaging programs. Echoes of Wendy's. More capital investment going into Jack In the Box than DelTaco (remains to be seen how DT turns out).

 

Buybacks! Been on a slide since 2021 with a few nice bumps. Maybe time for a more consistent and forceful change in price direction? Give me a lever and I will sell you a billion frozen tacos.

 

[I sourced Zacks for some of this]

JACK Zacks 2024-04.pdf

[nwoodman]

6758.T Sony Co + 7974.T Nintendo

[Luke]

Put another buy order in for PDD

[Paarslaars]

Bought a Camp Chef Woodwind Pro, love it! 

[Spekulatius]

Added a bit of BAX today and yesterday. I also added back PYPL recently.

 

Bought a tracker in JACK in one account, which is a stock @gfp pointed out.

[DooDiligence]

Bought a 1% position in JACK yesterday. Watched it pop this morning and regretted not buying more. Checked back in this afternoon and doubled up.

[Luke]

Market order in for more Prosus NV

[Saluki]

The past couple of days I was adding to MSCI (2% position now), NTDOY and CPNG (about 3.5% each).  Unless the price comes down again, I'm done buying for now.   Bought some ATEX after the price came down to keep it at 1%.  

 

 

 

 

[John Hjorth]

On 4/8/2024 at 5:18 PM, John Hjorth said:

After exiting a small position in DANSKE.CPH [Danske Bank A/S, Denmark] in January 2015, I started a small position in the bank again today.

 

I added a tiny bit to DANSKE.CPH today.

[rkbabang]

I converted more of my Ethereum to Bitcoin yesterday.   Not a straight conversion. I bought Bitcoin with about 65% of it. I’m holding back 20% for taxes and 15% which I plan to buy MSTR with tomorrow.

[Dinar]

COKE - the bottler

[Paarslaars]

Traded some OXY for MSTR.

[LC]

6 hours ago, Dinar said:

COKE - the bottler

Tender offer for a huge chunk of the outstanding - and the shares already trade above the tender price. Interesting situation. Do you have a long term thesis or is this a trade?

[Dinar]

7 minutes ago, LC said:

Tender offer for a huge chunk of the outstanding - and the shares already trade above the tender price. Interesting situation. Do you have a long term thesis or is this a trade?

It is a long-term investment.  I have followed the company for a couple of years, but I was not 100% sure that the operating margin improvement was sustainable.  Given the size of the tender offer and the fact that the management that owns 12% is not tendering, I figure that not only profitability is sustainable, but that there is either a massive profitability improvement coming down the pike or there is another ace up management's sleeve.  Had they bought out all of the shares at $925 per share that they wanted, the stock would have been trading at 9x my 2025 EPS.  

[ValueArb]

I don’t know RFK Jr has Pelosi’s touch, but he’s buying GME.

 

RFK Jr buys GameStop.

[Luke]

1 minute ago, ValueArb said:

I don’t know RFK Jr has Pelosi’s touch, but he’s buying GME.

 

RFK Jr buys GameStop.

I saw that too...crazy times

[ValueArb]

3 minutes ago, Luca said:

I saw that too...crazy times

He’s great at the social media game, just bought himself millions in publicity and a whole new group of supporters for only $24K in stock. 

[DooDiligence]

Dude must have worms in his brain or something.

Edited May 23, 2024 by DooDiligence

[lnofeisone]

Reloading on BYON, starters in SBUX, KDP, and BAX. 

 

Tactically shorting UNG. Gas got wild and I have a big energy position to counteract if it gets too wild. 

[Santayana]

Added to JOE and NTDOY.

[Castanza]

36 minutes ago, Santayana said:

Added to JOE and NTDOY.

Same two

[Saluki]

Also added to JOE and NTDOY on the dip today. I probably have enough of both already, but "it was on sale", as my better half would say. 

 

Such a weird day in the market where everything in my portfolio was flashing red except for one stock.  Been adding slowly to ATEX, FRPH and KRKNF to get them to 1% weight and then I'll stop and check back on them in a year. No particular news on them yet.  

 

Sold off some of my higher basis STNG shares that hit the one year mark and bought a few shares or Tsakos (also in tankers but cheaper/with more debt)  so that I see it when I log in and do more reading up on it.