Cosi, Inc. (NASDAQ:COSI)
CAPS Rating:
Owns, operates and franchises premium convenience restaurants which sell sandwiches, freshly tossed salads, Cosi bagels, pizzas, S'mores and other desserts, and a variety of coffees along with other soft drink beverages, teas and alcoholic beverages.
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Re-up after a year hiatus. My major concern with COSI had been management. It seems to me that they have taken a MAJOR step forward with the recent hiring of Hyatt (from Burger King fame). Expanding into Texas. I think the shorts are being pressed right now, and that the stub will trend higher over the next 12 months (with the typical hiccups along the way) as Hyatt begins showing results.
My other reason for revisiting/reinvesting in COSI is that Home meal replacement / casual take-out is the fastest growing sector of the food business. This is different from fast food. I think both will do well even in a struggling economy since we'll all have to work more ... and harder. Besides no one knows how to cook anymore. I kid you not. As a farmer, the hardest thing is to sell raw produce and meats to those who neither have the time, the inclination, or the experience. This explains why most folks end up throwing out all the fresh stuff they bought at the farmer's market last week. They had good intentions, but something just went wrong!! (Okay, enough with that rant).
Here is my original write-up from 11/06
This is a trading stock for me ... at least until I feel confident about whether they have the Management Where-With-All to pull it off long term. Good potential ... but Management has yet to earn my confidence.
Entered this stock when I perceived a catalyst (earnings report). Sold ~7-8 days later when I felt the momentum would ebb. Good Call ! But "short-term trading" is new to me. Fascinating.
I wish I could have BOTH a "Trading Position" and a "Holding Position" in CAPS for the same stub. It would more accurately mirror what I try to do in real life. Take some gains off the table for new investments while maintaining confidence in my original DD / investment hypothesis.