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Varchild2008 (83.82)

Put your Money where your Baked Potato is

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January 25, 2011 – Comments (3) | RELATED TICKERS: WEN , F

Do you love a Baked Potato?  I know I do....  They never give me the kind of Heart Burn, Acid Reflux, that regular fried fries gives me.

You can spatter sour cream and chives and butter and and and and smothered with uhm..whatever I love Baked Potatos.

I also love Wendy's as a stock investment strategy.

Look at Wendy's the same way as Ford Motor Company was back in 2008.

By doing so you begin to get a picture of the Burger Joint that looks like this Comparison to Alan Mullaly:

A)  Ford dumped Volvo onto Geely as part of their comback, ONE FORD, strategy.

A)  WENDY's is seeking to sell off ARBY's as part of their ONE WENDY's, strategy.

B)  Ford loves to experiment with new innovations, technology to entice shoppers...

B)  Wendy's gives you several options besides FRIES when you order a burger... They have reported back in November that they are going to revamp their entire menu!

http://www.nj.com/shopping/index.ssf/2010/11/will_new_changes_to_wendys_men.html

How's that for constantly looking to innovate one's offerings rather than serving BIG MACs and QUARTER POUNDERs for the 1 Quadrillionth time?

C)  Ford seeks to reduce debt, clean up their balance sheet.

C)  Wendy's Cash per share exceeds their debt levels but cash flow does not.  They have negative pre-tax margins.... Much of which is having to do with ARBY's pulling WENDY's earnings down.  ARBY's has been a complete money loser.

When WENDY's gets rid of ARBY's....earnings will automatically start to look much better and their balance sheet will immediately be in the healing stages.

D) FORD still in realtive infancy in the International Growth Stage of a multi-national corporation.

D) WENDY's is also still in a relative infancy phase of its overall international growth strategy....Dealing with ARBY's is the first big step to ramping up their growth overseas.


I'm sorry... Did you say...... DId you say..... Fundamentals of WENDY's are awful?  Sure, you can cite tons of issues with WENDY's balance sheet.... and medicore quarterly EPS results as well...

There's a lot to HATE about WENDY's as an investment and you really don't have to bore me to death with your issues you have....  Cause I already know the reasons NOT to invest in (WEN)...

You already told me those reasons not to invest in WENDY's (WEN), back in 2008 when you said FORD (F) was not a good long term investment strategy.

3 Comments – Post Your Own

#1) On January 25, 2011 at 6:27 PM, Varchild2008 (83.82) wrote:

CRUD!!!!!!!!!!!!!!!!!

I forgot the DISCLOSURE PART!!!!!!

I am CONSIDERING buying some shares of WENDY's sometime this week.

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#2) On January 25, 2011 at 9:40 PM, soycapital (< 20) wrote:

Interesting............about Wendy's 

I recommend MCD but not at these levels; and also.........I don't recommend eating there.

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#3) On January 26, 2011 at 4:07 AM, valunvesthere (< 20) wrote:

Ford is already in a industry that is overcrowded with competition and they all have operation costs ranging from the 100's of 1 000 000's to over a 1 000 000 000 dollars. Not many new rivals getting into the automotive industry because the start up is easily a couple of 1 000 000 000's of dollars and takes years to set up operations to run efficiently and decades to become a house hold name brand.

Wendy's is in a industry that has infinite competition from stock market listed franchise chains RESTAURANT CHAINS, private restaurant chains, regional restaurant chains, indepandant ma and pa restaurants and etc. The cost of starting up and operating a restaurant is a few 1000's to 1 000 000 000's of dollars (depending on the size and amount of restaurants).

In simpler terms look up all the yellow book/yellow pagesfrom every state/province, city/district, area/region and etc.(for more adventurous types:around the world) Look up and count all the new automotive dealers. Below is a rough list of high volume dealer

Acura

Audi

BMW

Buick

Cadillac

Chevrolet

Chrysler

Dodge

Ford

GM

GMC

Honda

Hyundai

Infiniti

Jeep

KIA

Lincoln

Mazda

Mercedes-Benz

Mini

Mitsubishi

Nissan

RAM

Saab

Scion

Smart

Subaru

Suzuki

Toyota

Volkswagen

Now before you read on start brewing alot of coffee and drink alot of it because only a wired person will pursue such a task:

Now look up and count all the restaurants there's nearly an infinite numbers of restaurants = nearly infinite competition + new restaurants opening up every day.

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