Replies to post #40077 on Savvy Trades and Investments

[Bmrboy]

FCCG - Agree with KiK in this. I purchased some on Friday but already sold it. The numbers just don't make sense to me and FCCG has already exploded in value. The real money has been made.

[zenvesting]

FAT/FCCG: Obviously this is a speculative valuation arbitrage play and I've invested accordingly....keeping it to a small-ish position.

I agree that their IPO valuation of over 40 times their proforma 2017 earnings is high, but the target dividend yield of 4% at the IPO price of $12 should put a floor under it somewhere in the high single digits.

Also, being a franchising only business, Fatburger has a pretty rich pipeline of 30 new locations per year, which amounts to about 15% growth from their current 176 locations.

I appreciate your time giving it a look over, I'm hopeful that someone in the financial press is going to "press" Andy Wiederhorn to clarify the current financial position of FCCG......as FAT is dependent on the health of FCCG.....it kind of baffles me that no one has pressed him too hard on this issue yet.