SwingTrade Member Forum

[SSKILLZ1]

ARKR

Started my ARKR position today in the 14.50's. In my opinion this is the best way to play the restaurant sector.

1) Sales are starting to improve, and should continue to do so with further improvement in the economy. Sames store sales were up 9% last quarter.

2) Earning were .83 last quarter fully taxed, and q4 is generally it's seasonally strongest quarter, so maybe we could even see a $1.00 for the quarter.

3) My guess is next year q1 and q2 with improvement in sales could be breakeven or slightly profitable, which at that point could push trailing earning close to $2.00 at that point.

4) Healthy Balanace Sheet with almost 2.60 in cash.

5) Pays you while you wait. Currently Yielding 6.9%, so I feel ARKR is cheap here.

Conclusion: I like arkr here at $14.50 In my opinion is the best way to play the restaurant sector, as it is rather cheap, going through a seasonally strong period, and Pays a healthy dividend. All is just my opinion, and I could always be wrong though.