Fiscal Cliff

Get your barrels ready because we are going over it!  Don't think is will make that much of a difference being they will roll back the worst of it in the next few weeks.  Could be a very nice short term buying opportunity.  Good luck investing.  Tony

Happy Holidays

Hope everyone had a great Holiday break!  Thanks for reading and good luck all.

Market Correction

Now that the market has corrected it's a perfect time to jump into some of those great Dividend paying stocks I have been posting about.  McDonalds (MCD), Starbucks (SBUX), Coke (KO), and Wendys (WEN) all good ones to but into right now.  Think for the long haul!  5 years from now you will be very happy you invested in these companies.  Good luck investing.  Tony

Wendys Udapte (WEN)

From a Seeking Alpha Article on 12/12/12:

 

The Wendy's Company (WEN) is Peltz's fifth largest 13F holding and made up 10% of his firm's 13F portfolio last quarter.

Wendy's pays a 3.4% dividend yield and has made decent strides of late to take market share from McDonald's with a focus

on premium ingredients. Wendy's has seen big swings in its last few quarterly earnings reports, but it still expects to

remain on target in 2013, as it plans to continue its restaurant-remodeling program. Wendy's also expects to maintain a

healthy capital structure, one that has allowed the fast food chain to double its quarterly dividend to 4 cents, while

announcing a $100 million share buyback program.

Wendys (WEN) Update

The Company is starting to do the right things.  I think this quarter will be better than the analysts anticipate.  The stock should get a nice pop.  Not that it really matter for the long haul.  I am in this one for at least 3 year turnaround play.  We could see $20 a share within 3 years, plus collect the 3.5% dividend while we wait.  Good deal for sure.  Good luck investing.  Tony

Wendys (WEN)

My patience with this company is paying off.  Now that they have doubled the dividend payout I am collecting  3.6% yield while I wait for the turnaround.  It's already underway and starting to pay off.  I think we will see $6.50 a share before the end of 2013, maybe even break out past $7!  Good luck investing.  Tony

Happy Thanksgiving

Everyone be happy for what you have in your lives.   Enjoy today and don't eat/drink too much!  Tony

McDonalds (MCD)

This stock had gotten extremely cheap in the last few months.  It's trading close to it's 52 week low.  They once again raised their dividend for this quarter.  This cheap price is a sale on their company's stock.  I am buying more shares at this level.   Two years from now after collecting the rising dividend and a 50% price rise you won't be sorry.  Good luck investing.  Tony

Wendys Update (WEN)

Looks like our patience with this Stock Wendys (WEN) is finally beginning to pay off. Yesterday they doubled their Dividend to now yield 3.5%.  Also announced a $100 million share buyback program.  Whole market is down but as of this post they are up almost 3%.  Looks like the store remodeling plan is working with up to 25% increase in the upgraded stores.   I can see $6.50 a share within the next year for this stock.  Good luck investing. Tony

Barnes and Noble Update

Barnes and Noble (BKS) stock has held up nicely during the market correction we have seen over the last week.  I look for Christmas sales to really pump up this stock.  Could we see $20 a share by April?  I think it's quite possible.  Good luck investing. Tony

Today's Market Correction

I'm glad the market went down today.  Things were getting overheated.  A few more down days and I will start aggressively buying some of the quality Dividend paying stocks I have been tracking.  Two perfect examples would be McDonalds (MCD) and Coke (KO).  Both raise their Dividends year after year, way more than inflation I may add.  Even if the stocks go no where for 10 years you still make positive gains after inflation.  This is what investing is about.  It's not gambling or speculating, when you do it right.  Good luck investing.  Tony

Barnes and Noble

I love being right about stocks on this BLOG.  Of course I'm not always right but time has a way of healing bad picks sometimes.  So far my timing has been great on Barnes & Noble (BKS).   I told you all the Nook business alone was worth far more than the market cap of the whole company.  The stock is starting to finally factor this in.  It's not too late to get in on this one.  $20 a share in the short term is very possible.  God luck investing.  Tony

Wendys Update (WEN)

I really have egg on my face over Wendy’s (WEN).  Think I just bought in too early in their turnaround cycle.  I still think the company will turn around and the stock will trade in the $7 a share range, within a year.  I am sticking to this one for the long haul.  Will collect my now 2% dividend while I wait for them to “Right the ship”.  Still think their food is hands down better than the competition’s.  Thanks for reading and Good luck investing.  Tony

Barnes and Noble (BKS)

Looks like this stock is starting to move up.   It's not too late to get in.  I see $20 a share within a year and maybe more upside.  Plus Rumors of Microsoft buying them out should help.  I like it at $13 a share, big time.  Good luck investing.  Tony

Barnes and Noble (BKS)

Looks like the market is finally starting to see the value of their Nook business.  I see this stock at $25 a share within a year.  Good for a 2 bagger.  Good luck investing.  Tony

Barnes and Noble Stock (BKS)

Liking this Stock more and more.  Today announced the addition of 2 more major retails in England that are going to carry the Nook.  I like it for the next few years at least.  Long term we will see.  Good luck investing.  tony

Barnes amd Noble (BKS)

Weird there earnings were better than expected and the stock falls 3% today.  Stranger is it was up 7% in pre-market trading.  I guess it fell back on short term profit trading.  Thing is the Nook business, .which is being spun off, is worth $20 a share!  The shares are currently trading below $12 a share.  What a great buying opportunity this is.  Thanks for reading and goof luck investing.  Tony

Wendys (WEN)

Stock has been falling down on me lately.  I'm not giving up on it yet, buying more on these dips.  Nothing has changed with the outlook for this company.  I am still recommending buying it short and long term.  You won't be sorry.  Good luck investing.  Tony

Wendys (WEN)

I feel this one about to really turn around.  Buy now at these bargain prices, may not see them again for a long time.  Even if you get in too early collect 1.8% dividend to wait it out.  I like it short and long term.  Good luck investing.  Tony

Mcdonalds Stock (MCD)

Got to say at the current stock price for McDonalds (MCD), I'm loving it!  Short and long term buy.  Long term even more, after 35 years straight of Dividend increases got to love this company.  Food and coffee is so much better than a few years a go to boot.  Good luck investing.  Tony

MetroPCS (PCS)

I hate to say I told you so but this stock is moving up big time!  Earnings came in strong and now the market is playing catch up on their stock.   Closed over $9  a share today.  I have been recommending it since $6.50 a share.  Good luck investing.  Tony

MetroPCS (PCS)

The stock of Metro (PCS) is starting to catch up to the companies book value and earnings potential.  This company is the cheapest of the Cell Phone providing companies on a bunch of metrics.  The market will either price it up accordingly or someone will come in a buy them out at a premium.  Either way I look for $9 a share within a year, maybe higher.   Short and maybe long term buy.  Good luck investing.  Tony

Wendys (WEN)

In a tough market yesterday Wendys is hanging in there.  I notice some financial writers are jumping on the Wendys bandwagon.   It's not too late to get in.  This one has a long way to go up during the company's turnaround.  $7.50 a share within a year is looking quite attainable.  Good luck investing.  Tony

MetroPCS Update (PCS)

Looks like my PCS post turns out to be a good one, at least for the short term.  The market still is was undervaluing this company.  They are sitting on a ton of cash and have the lowest PE in their sector.  Remember this company is and should continue to make a lot of cash to reinvest in the business.  Plus at these low levels they are a prime takeover target.  I could see the takeover going for a least $10 a share!  Much upside in PCS, short and long term buy.  IMHO.  Tony

Wendys (WEN)

Finally my patience with the stock is paying off.  Stay with it for the long haul. Good luck investing.  Tony

MetroPCS (PCS)

This stock is super cheap.  I am now long PCS.  This Article says it all. Tony

June 21, 2012 by: Erik Gholtoghian  |  about: PCS, includes: S, T, VZ Fundamentally, MetroPCS (PCS) is not

the company its stock price would suggest. This may be due to a number of factors, but one of which seems to

be ignorance.

 

Markets are nearly efficient, but in some instances a brand image can overly influence investors' opinion of

a stock. Because MetroPCS has been cast by many cell phone users as an inferior network, many investors

automatically assume the stock itself is also of inferior quality. At this time, neither of those

assumptions is correct.

 

Several years back, MetroPCS did have a fairly low quality network with snail speed Internet. Calls would

occasionally drop. Callers would frequently not hear each other properly, especially deep inside of large

buildings. But even then, the network got the job done and for the correct price, all the while making the

company profit. Since then, call quality on the network has risen dramatically and Internet speed is

sufficient for even every day users. Dropped calls are rather rare, and voice quality on the newest 4G LTE

phones is nearly indistinguishable from carriers like Verizon (VZ), AT&T (T), or Sprint (S).

 

In the future, a network upgrade to VOLTE/VOIP will allow MetroPCS to offer even higher quality voice

services to its users, possibly called HD Voice, and at the same time allow a more efficient use of network

resources and spectrum.

 

All of this excellent financial and technological management has resulted in MetroPCS sitting on nearly $2

billion in cash. Because that cash is likely invested and earning less than 1% per year, and shares are

trading at a large discount, there is an argument that it could be time to finally buy back shares. Common

stock has a built in cost, and in this case that cost is in the neighborhood of 6-7% per year. Meaning, the

cost of equity is higher than the return on cash.

 

 

 

With such a massive war chest and stable business, I believe MetroPCS ought to show the market which company

actually can afford to buy MetroPCS out. And that company is none other than MetroPCS itself.

 

A share buyback would put some of the cash to work and improve company valuation. Profit and equity per

share would rise and liabilities per share would fall.

 

By offering to buy shares at $6.50 per share, using only $400 million of the nearly $2 billion in cash,

MetroPCS could buy back 61 million shares, literally 17% of all shares outstanding, and still have more than

enough money left to fight off the increasing competition and recent slowdown in profit.

 

The future is bright for MetroPCS because other options for that cash exist too. A dividend, a large network

expansion, or a buyout of a smaller company could all be announced. But in the end, a medium sized share

buyback seems to reward investors sufficiently while continuing the company's high rate of growth.

 

For comparative purposes, the chart below shows that Verizon, Sprint, and AT&T have roughly $6 billion, $7

billion, and $2.5 billion in cash, respectively. This means that MetroPCS has nearly as much cash as AT&T, a

company which is valued 95 times higher than MetroPCS.

On the Move

Wendys (WEN) is on the move again.  When will it breakout past the $5.50 a share ceiling?  Once it does look for a big move up towards $7 a share.  I have the patience will I collect 1.8% dividend.  Good luck.  Tony

Insider Buying of Wendys

Insiders in Wendys(WEN) have been buying the stock between 4.53-5.27 a share. Go to Yahoo Finance and see for yourself.  good luck investing. Tony

Wendys (WEN)

Ate at my local Wendys yesterday and damn they make some good burgers!  Now if only their quality food can turn into great earnings for us shareholders things would be perfect.  I still believe in their turnaround.  Our patience should be rewarded.  Good luck investing.  Tony

Good Wendys News

This was posted on Friday, via AP.  Hopefully we will get some follow through when the market recovers on Monday.  Good luck investing.  Tony

NEW YORK (AP) -- Wendy's shares managed to climb Friday while most of the market was falling.
The fast-food chain got a boost after two analysts at Janney Capital Markets upgraded its stock to "buy" from "neutral."
Analysts Mark Kalinowski and Edward Grace gave several reasons for optimism. They predicted that May sales would turn out to be better than expected, and they're hearing more chatter about the chain going private. They also said they're hearing anecdotally that franchisees are getting the financing they need to remodel stores.
Still, theirs is a contrarian view. Of 14 research firms surveyed by FactSet, only Janney and two others list Wendy's as a buy. The rest rate it a hold.
Wendy's Co. is in the middle of reinventing itself, trying to shake customer perceptions that its stores and menu were outdated. It's brought in new executives and separated from Arby's. It's modernizing the restaurants and overhauling the menu. Even so, the chain last month lowered its earnings expectations for the year, citing higher beef costs and weaker-than-expected sales.
A Wendy's spokesman declined to comment on whether the company is considering going private. But the Janney analysts note that it's been a successful path for other fast-food chains. Burger King and CKE Restaurants, which owns Carl's Jr. and Hardee's, were both bought by private investors in 2010. Both recently announced that they plan to go public again. Investors will often buy a company that they believe is struggling, spend a few years shaking it up, and then take it public again when they believe the market will give them a return on their investment.
On Friday afternoon, Wendy's shares were up 7 cents to $4.66. The Dow Jones industrial average was down about 2 percent, and nearly 85 percent of the stocks on the New York Stock Exchange were trading down. McDonald's Corp. was down almost 3 percent.
But even with Friday's boost, Wendy's is still off about 13 percent for the year so far — though the Janney analysts said that meant the stock could be priced right for buyers.
Two other publicly traded restaurant chains, P.F. Chang's China Bistro Inc. and Benihana, announced in May that they plan to go private.

Wendys Bucks Tread

Market goes way down and Wendys (WEN) goes up.  I love when stocks diverge from the general market tread.  Almost always means the stock is about to outperform the market.  We have been riding this one for awhile so time to collect.  Good luck investing.  Tony

Wendys Movement

Wendys (WEN) stock is up 1.5% right now.   Posted from my Driod phone because I love my smartphone.  Good luck investing.  Tony

Wendys (WEN)

Finally some positive movement in the stock.  On Friday it was up 3.35%, not too bad for a one day move.  The big question is if this is the start of a up word movement back toward $5.50 a share?  I sure hope so for all you short term traders out there.  Happy memorial day weekend.  Tony

Wendys (WEN)

So far the stock is still stuck at around $4.50 a share.  At least it seems to have found a bottom.  Let's hope it holds here are starts to move back toward $5.50 a share.  Good luck investing.  Tony

Wendys (WEN)

Don't you hate when a Stock purchase makes you feel like you don't know how to invest?  So far this one is going against me.  Yet I still feel will be vindicated eventually. The market will realize the error in the pricing of this company, I hope soon.  In the mean time I collect the 1.8% dividend and wait.  Good luck investing.  Tony

Intel (INTC)

I had liked this stock long before reading this article.  It's just positive reinforcement of my decision to buy it last year.  Good luck investing.  Tony

January 5, 2011. REUTERS/Rick Wilking

By Noel Randewich

 

SANTA CLARA, California (Reuters) - Intel Chief Executive Paul Otellini showcased the top chipmaker's

long-awaited push into smartphones and talked up ultrathin laptops he hopes will spice up a category that

seems increasingly dull compared to tablets and other mobile devices.

 

With worldwide PC sales barely growing, Intel Corp (INTC) has been racing to find a foothold in smartphone

and tablet markets, where processors based on ARM Holdings Pls's (ARM.L) power-efficient chip designs are

widely used.

 

Last month in India, Lava International launched the first smartphone using Intel's new Medfield processor

and the device has received respectable reviews from benchmark testers.

 

Intel has also announced the Medfield chips would be used in upcoming phones from Motorola Mobility

Holdings Inc (MMI), Lenovo Group Ltd <0992.HK> ZTE <000063.SZ><0763.HK> and Orange.

 

"We're getting awfully good reviews for our first phones," Otellini told investors at an annual Intel

event. "We have ambitions; you'll see more announcements over time and very cool capabilities built into

phones."

 

Many investors are waiting to see how successful the new handsets become with consumers before declaring

that the chipmaker is a serious player in the mobile market. But growing expectations that Intel will be

able to compete have fueled gains in its shares in recent months.

 

Intel is also heavily promoting a PC category it has dubbed ultrabooks, similar to Apple Inc's (AAPL.O)

Macbook Air and offering some of the technological chic the iPad and other tablets epitomize.

 

Some investors are concerned that the expensive components used in them, such as solid-state drives, make

them too pricey for many consumers. They worry Intel may sacrifice profit margins on sales of its

processors to help make ultrabooks affordable.

 

Otellini said sales were on track and would pick up in the second half of 2012 as more manufacturers start

using Intel's new Ivy Bridge processor.

 

"We're on track to meet our goal of 40 percent of consumer notebooks this holiday season being

ultrabooks," Otellini said.

 

Last month, Intel posted quarterly earnings that failed to inspire gains in its recently high-flying stock

and also said costs associated with ramping up new production lines for the Ivy Bridge chips would hurt

gross margins more than expected.

 

Otellini said manufacturers are working on 20 tablets using Intel processors and Microsoft's long-awaited

Windows 8 platform, expected later this year.

 

He also forecast that Intel, with its deep pockets, would become one of an increasingly smaller group of

leading-edge chip manufacturers as the sector moves toward larger and costlier factories.

 

With the industry preparing to increase the size of the silicon wafers it uses, letting manufacturers fit

more chips on each, future leading-edge factories will cost over $10 billion each to build, compared with

about $5 billion now, Otellini added.

 

(Editing by Andre Grenon)

Egg on my Face

My pick of Wendys (WEN) for the short looks like a bad decision.  Earnings today were  bad. In the long run it's an even better buy.  Buy now while it's on sale. Good luck investing.  Tony

Wendy's Update

Things are moving nicely with their turnaround yet it's not reflected in the stock price.  This stock is going to be a great short term play.  One day soon it will start a rise to $5.50 a share within like a week's time.  This could be a great short term speculation as well as a long term investment.  Remember hold it long term and collect the 1.7% dividend.  Good luck investing.  Tony

Wendys Article

In this article, I consider another stock from the sub-$5 world: Wendy's(WEN_). I am long WEN and consider it a sensible speculative play for the aggressive section of long-term investors' portfolios. Wendy's actually pays a small dividend ($0.08 per share for a yield of about 1.7%). That helps ease the pain of the stock's pullback to below $5 and the boredom often associated with scaling into a relatively stagnant position. I would not be surprised to see WEN trade range-bound for some time.
10 Stocks That Could Rise in Market Decline >>
Investors love turnarounds. They just do not like sitting around waiting for them to happen. As such, I could see WEN spiking on strong sales or further stumbles by rival (and now No. 3) Burger King. Until the company shows that it's multi-year turnaround plan is starting to show material results, I do not expect the stock to be able to sustain upside.
In some ways, Wendy's is attempting to do what Domino's(DPZ_) has done. Over the course of the last few years, Domino's pulled off a turnaround of epic proportions. The company essentially trashed itself publicly, ridiculing itself for cardboard-like crust and sauce that tastes like it came out of a can. Domino's laid out and executed a plan to improve the taste and quality of its food. It made an aggressive push to make online ordering more interactive and "social." Both moves have paid off big time. Over the past two years, the stock is up about 133%.
While Wendy's has not been as self-deprecating as Domino's, it has, for all intents and purposes, admitted errors in its ways. Its menu has undergone wholesale changes, its burgers are no longer square and, slowly but surely, the company is remodeling its stores. A makeover process of that scale takes time, whereas Domino's did not have to worry about overhauling brick-and-mortar stores.
In 2011, Wendy's remodeled 10 stores under its "Image Activation" program. It expects to overhaul about 50 more in 2012, which will lead to higher capital expenditures that CEO Emil Brolick expects to level off over time:
In 2013 and beyond, we expect to generate further economies of scale and reduce unit investment, with the goal of more rapidly reimaging a significant portion of the Wendy's system. All our customers deserve the kind of Wendy's experience that has been created in our new Image Activation restaurants. It's a relatively slow process, but likely a worthwhile one.
When you compare shares of DPZ and WEN, you see similarities. Both companies fell on hard times and their respective stocks stagnated. Domino's successfully turned the corner and the stock followed. Wendy's has yet to fully enter that crucial pivot point, but it could be headed that way.
As a long-term investor, there's really nothing better than accumulating a stock like WEN (or DPZ about two to three years ago) during this period of stagnation. While there's considerable risk associated with the play, the dividend decreases your exposure slightly. Plus, if you're scaling in somewhat conservatively over time, you're not hampering your personal cash flow. Accumulating over a period of years can lead to a formidable position, but it's not nearly the same as going all-in the day before earnings.

This article is from TheStreet.com.   Let's hope Wendys gets out of their funk soon.  Tony

Patience and Stock Investing

Patience is one of the most important things to practice when investing in company you really believe in.  Wendys (WEN) has been trying my patience for the last two years.  The turnaround had been much slower then I had envisioned.  Still I have collected the 1.6% dividend while I have patiently waited for the company to turn the ship around.  My average cost per share is slightly higher than the current price so I'm under water right now.  I'm not abandoning ship yet.  Hopefully my patience will be greatly rewarded.  Good luck investing.  tony

Wendys Update

I was traveling this weekend and ate at two different Wendys. Something I noticed they are slowly raising the prices of their value menu at some locations. Both locations were still busy so let's home the higher prices stick and head straight to their bottom line. I mean $1.19 is still a bargain for their junior cheeseburger deluxe. If the 20% higher price is all profit they should have a good quarter. Still love the company short and log term. Good luck investing. Tony

Wendys (WEN)

I love the new Chicken sandwich. They have been slowly raising the prices on their value meal. The turnaround is going nicely. Just have to wait for the stock price to catch up with it. Love the fact they passed Burger King to become number 2 among the burger chains. Buy and hold this one for the long haul. Good luck investing. Tony

P.S. - This is my 100th post on this BLOG. Look for great things in the next 100 posts too!

Cambell's Soup (CPB)

Been looking into this company and I like what I see. Management is cutting costs and making the right moves to start growing this company again. The dividend is 3.5% at a low payout ratio of around 40%, so easily maintained and hopefully will be raised soon. That and food costs have been way up so they should level off from here. Once food costs start to fall it will go right to their bottom line as profits. This is a long and short term buy, IMHO. Good luck investing. Tony

Wendys Article

Here is another article I agree with about Wendys (WEN). Good luck investing. Tony

Burger Wars Heat Up As Wendy's Moves Into No. 2 Slot

March 1, 2012 by: Jack Holland | about: WEN

Wendy's (WEN) earnings call today was an eye opener. For investors willing to buy in now while the stock price

hovers around $5 per share, Wendy's offers a compelling opportunity. Wendy's is currently kicking off a three

year turnaround plan that got underway last fall with its new Hot 'N Juicy burgers and a new addition to the

burger lineup called the W.



The turnaround strategy is a comprehensive one, calling for not only a revamping of stores from the inside out,

but a total image makeover involving retraining from top to bottom and ensuring that all employees have a smiling

face and a can-do attitude starting with top management. If franchisees do not wish to go along, Wendy's may just

opt to buy them out or hook marginal franchises up with winners that believe in the turnaround story. Top

management today noted that they have a considerable number of top notch franchise owners willing to expand their

ownership of the brand.



For a look at the sharp new restaurant facelift, click here. Wendy's has developed four different visual concepts

to test and determine what works best in what market. The concepts are designed to better engage the customer and

enhance their in store experience. Phoenix has been a test market for some of the new stores and Wendy's top

brass noted that franchisees having been ringing the phone off the wall asking as to when they will be able to

buy-in to the concept. This year, Wendy's intends to reimage 50 stores and is currently working to line up

financing for its franchisees. All the new stores, reimaged stores, and all franchisee stores in general are also

receiving updated POS systems that should produce incremental savings to the bottom line over time and reduce

everyday worker frustration with customer service delivery.



Wendy's is also adding breakfast to its menu and is currently working through the concept in test markets in the

northeast. One of the concerns noted by management and one analyst on the conference call was the time it takes

to deliver the product to morning customers that are always in a hurry. Delivering a freshly cooked product takes

time, but management noted they are working through this issue.



One of the more interesting questions was regarding the value menu. Its seems the menu is almost too good to be

true, and thus management may consider trimming back some items being made available. From a personal point of

view, I concur with management on this one, for Wendy's currently has the best darned dollar cheeseburger on the

planet that is served up with a slice of red onion, tomato, lettuce, and pickles along with the standard sauces.



Matter of fact, this is where I personally believe Wendy's is leaving a pile of money on the table.



Prior to the launch of this burger, I used to go with a Wendy's single meal deal. Now I can purchase a small

premium cheeseburger which agrees with my high cholesterol and my doctor, a dollar coke, and a dollar fry for

three bucks. Thanks Wendy's.



I like what I see. And given a share price that has been trading sideways for a couple of years now, this is a

great time to get in prior to the fruits of Wendy's efforts filtering down to the bottom line. Wendy's earnings

per share in the fourth quarter were in line with expectations, or a penny per share. And they are currently

paying a 2 cent dividend per quarter.



Look for a new Wendy's ad campaign to kick off this spring which should boost share growth. According to a recent

article in Advertising Age, it was noted that Wendy's surpassed Burger King to take the number two burger selling

spot in America, and according to Advertising Age, taking share away in a tough market such as burgers is no a

small feat.



Wendy's is a stock long-term investors may wish to begin accumulating. Should the turnaround strategy succeed, it

won't be long before the shares are hitting the $10 range and beyond. I am personally looking for a minimum of a

25% return on this stock over the next 12 months. Another plus is that Wendy's only has 389 million shares

outstanding after completing a major buyback program over the past couple of years. And finally, some pretty

major analysts are following this stock, so I will be looking for a few upgrades over the next year or so.

Wendys (WEN)

The turn around is in full swing. They are starting to remodel select stores. Thing is they need to invest 750K in each store to totally give it a make over. This will retard earnings in the short term but long term shareholders will reap the benefits over time. Already the stores that have been remodeled have seen large jumps in sales. The shares are again trading at the lower end of the their short term range around $5 a share. You could buy here and sell at $5.50 for a quick 10% pop or hold for the break to $7.50 a share. Long term I still believe in managements ability to right the ship on this one. Good luck investing. Tony

Cambell's Soup (CPB)

Here is a nice safe defensive stock for today's unsure times. The market is getting a little frothy but shouldn't matter to this play. Don't expect a home run but a nice safe sleep well at night kind of investment. Love the dividend and they should raise it once their turn around is complete. Good luck investing. Tony

Wendys Once Again

This is tuning into the Wendys (WEN) Blog once. Ate at my local one yesterday and damn their new burgers are good! I feel big things happening at the company and soon. Time for that trading range break out I have been expecting for awhile. Once they close past $5.50 look for $7 within a few months. Can't wait for Breakfast to be offered at a Wendys near me. Good luck investing. Tony

Wendys (WEN)

Just when you feel like dumping their stock they start to come back. They have been suck in this trading range for far too long. Once they can break out past $5.50 I look for big moves for this stock. $8 within 3 months of break out? Good luck investing. Tony

Wendys Earnings

Wendys(WEN) is releasing earnings tomorrow. I'm don't think there will be any upside surprise, will be happy if there isn't a negative surprise. The stock is now stuck in a narrow trading range. Hope after they put their earnings news behind them management can focus on growing the brand. This week Yum Brands, Taco Bell announced they too are getting into the now crowded breakfast space. I see this as a sign that there is a lot of money to be made serving breakfast. I hope WEN can get their share fare and us it to grow earnings. We will see what happens tomorrow. Good luck investing. Tony

Frontier Communication (FTR)

Here is a new dividend play idea. Frontier is a provider of Fixed line Phone and Internet access in the rural areas of America. Actually since completing the buying of Verizon Rural business they are the biggest provider now. Things haven't been easy with the transition. Thing is at current prices there dividend is over 14% Can they continue to pay this high yield? I for one sure hope so. Hopefully they can for the next year or two until the company turns things around. Than the stock price will go up and the yield will go down. Either way it's a win win for us shareholders. Biggest risk is the can't keep paying the dividend and have to lower or eliminate it. It's a big risk but you are payed highly to take it. Good luck investing. Tony

Wendys(WEN) Again

Don't want to turn this into the Buy Wendy's Stock (WEN) BLOG but can't stress it enough. The company is on the verge of turn themselves around. Once they do and the stock goes way up remember where you read it first, here. Good luck investing. Tony

Wendys (WEN)

Looks like I am not the only one noticing the value in Wendys(WEN). I agree with this article that the stock is about to break out of its trading range. Long and Short Term buy. Good luck investing. Tony



By Tommy Hughe

Wendy's Corporation (WEN) has been trading near all-time lows since late 2008. Hit hard by the US financial crisis,

the ensuing recession and an unprofitable merger with Arby's, many are asking when Wendy's will bounce back. The

stock, which lost nearly 75% of its value in one day, has had a volatile year. Currently trading around $5, WEN has

been stuck in a trading range with little hopes of breaking out. What will it take to bring Wendy's back to its peak?

Momentum is weak and without direction, I think the answer is a return to good fundamentals. Wendy's is current p/e is

over 48 with the forward looking version at 24. This makes Wendy's way overpriced. Price to earnings for the the Dow

stocks range between 9-18 with an average dividend around 3%. Wendy's is returning 1.5%.



Earnings in 2011 were weak compared to analysts estimates and are only up about 1.5% from 2010. Loss in the third

quarter of 2011 widened over the previous year to $4 million despite an increase in revenue. However, total revenue

for the quarter grew by 2% to $611.4 million. Analysts were expecting a much larger increase to $619 million. A large

portion of costs were attributed to Arby's, which Wendy's sold earlier in the year. Wendy's sold an 85% stake in

Arby's for a combined cash/debt deal totaling $320 million. During the conference call CEO Roland Smith reaffirmed

2011 guidance. Total growth for 2011 is expected to be 2%. Operating margins for Wendy's owned and operated stores is

expected to be a full percent off of 2010, due in part to rising commodity prices. Fourth quarter earnings are

expected to be released in late January of 2012. So far management has been very tight lipped about its expectations

for 2012.



Wendy's has the future in mind. Forward thinking management is implementing several plans to boost profits and share

price. On the sales front, Wendy's is opening its stores for breakfast. Breakfast sales account for nearly 29% of

revenu in the fast food arena. Wendy's is developing a line of high quality low cost breakfast options and, of course,

good coffee. Another strength, mentioned by CFO William Hare, is Wendy's “ability to generate free cash flow.” This

cash flow is being reinvested in store remodels and updates, among other plans. Wendy's is also engaged in a stock

repurchase plan in an effort to boost share price and investor confidence. Wendy's repurchased $250 million in shares

during 2011. Since the inception of the plan Wendy's has bought 82 million shares at an average cost of $4.84. In 2012

Wendy's is expecting to open 34 new stores, including franchises and overseas operations.



Competitors Yum Brands (YUM) and McDonald's (MCD) are more attractive on paper, and both can be clear winners.

However, a look at the charts suggests they're played out. Since 2009 YUM has increased over 100% from under $25 to

near $60. YUM's momentum is waning, and its market indicators are divergent. The same is true for McDonalds. McDonalds

has been trending up sine 2003 posting gains over 900% in that time and completely weathering the global financial

storm. I'm not saying either of these companies is in for a major correction, but the bull is tired -- they won't be

advancing this year.



YUM recently announced an increase of its guidance for 2011 EPS growth from at least 12% to at least 13%. In the same

statement 2012 EPS growth was estimated at 10%.This announcement was on top of disappointing US results and strength

in foreign and emerging markets. The forward gains are based on estimates of international growth and currency

conversion rates. Given the state of the international economy I would not count on that. China is expecting to slow

by a half percent next year and to have entered a period of extended economic slowdown. McDonalds is expected to grow

at the average rate of 9.5% over the next five years. I think this is fairly optimistic since average global growth is

estimated at 2.5%.



On the long term charts Wendy's looks like it has been trading flat for several years. Momentum is bullish but almost

non-existent. All of the volume spikes are bullish, appearing on up days, and support seems to be there. The short

term charts show something else entirely, a choppy and highly volatile market. WEN has been trading in a range from

$3.60 to $5.75 and is now approaching resistance. Again, momentum is bullish but barely there, I think traders are

waiting for fourth quarter earnings. If Wendy's makes a break above the range it will go straight to $20 before

encountering any serious resistance.



Wendy's is in good shape to break out. Management is dedicated to improving business. Remodeling stores for customer

appeal and comfort, opening for breakfast and focusing on same store sales are a recipe for success. I think that the

entire fast food market is saturated, but Wendy's has room to grow by way of taking market share. Wendy's has been

struggling for so long I think that the stock price reflects a bare bones value of the company. Once Arby's is fully

off the books and capital expenditures begin to pay off Wendy's will do quite well. Positive earnings growth will

bring the P/E ratio back into line with the general market.