Nathan's Famous, Inc. (NASDAQ:NATH)

CAPS Rating: 5 out of 5

The Company operates and franchises a chain of retail fast food restaurants.


Player Avatar TMFDeej (99.24) Submitted: 1/20/2013 11:33:49 AM : Outperform Start Price: $37.95 NATH Score: +6.12

After talking about Hillshire Brands in this week's Barron's Roundtable, Mario Gabelli went on to talk about Nathan's Famous (NATH), man he has hot dogs on the brain right now...I wonder if he's trying to corner the mystery meat market. As an interesting side note at this point, I vaguely recall hearing that the founder of Nathan's was my father-in-law's cousin (I'm actually not kiding). That automatically makes me an expert on the company :). Gabelli likes how Nathan's has reduced its share count by 2 million shares to 4.2 million. He thinks that the stock does not curently reflect a solid deal that NATH made with Smithfield to market its products starting in 2014, making the stock appear more expensive that it will ultimately be. Again, this idea is interesting and sort of a special situation in that there seems to be a coming revenue stream that is not showing up in the company's numbers yet. That's pretty neat, but probably not enough to motivate me to put real money down. This is probably a pure CAPS play just to follow how well Gabelli's idea turns out.Deej

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