California Pizza Kitchen, Inc. (CPKI)
A casual dining restaurant chain with a particular focus on the premium pizza segment.
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This met a high level screen to indicate a buy and strong outperform against its peers (other tickers in its industry). My 1st version of this spreadsheet devles deep into the company's balnace sheet and recent income statements, combined with other relevant price data for the company including insider/institutional holdings, short interest, debt levels, etc.
Testing capabilities of this 1st version of my automated, valuation spreadhseet matched with my personal criteria and see how it holds up.
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repicked to improve my accuracy
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When the overly optimistic FOMC says that household spending will be "constrained" by sluggish income growth, ongoing job losses, lower household wealth, and tight credit AND Shanghai stocks hit a seven-week low, then you know this bear market rally is finally over!
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The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).
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good pizza
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crappy chain restaurants are on a tear but i am not buying.
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Output from Asterism:
11/16
10/17
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Maybe it is just me, but at almost $15 this stock seems over priced. I really don't think it will remain up as the rest of the market goes through the recovery. Of course, I have a prejudice against profit making, established companies that don't pay dividends.
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Great time to short this stock. We had a recent run up and now its time to go down in this bear market. Missed the top but still plenty of downside.
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slightly overvalued
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Now that Christmas is over and people sit down to pay the bills, restaurants will be among the first to take a hit
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New 52 week low. Double down on losing position.
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No one wants to paying big bucks for gourmet pizza.
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its a new bussines and in the process of growing
is becoming very popular.
The cpki pizzeria had recently open few new stores world wide
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Slow economy + high gas prices x "premium segment" = loser.
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Never seen a pizza place go out of biusness. Just to cheap to make. Worked at one during summers on Atlantic City board walk. Yield per slice if I remember correctly .15 make sell 1.75 these guys had loot.
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This company is one of 62 listed on the BetterInvesting Growth Screen in January 2008. It met 4 criteria: it is projected by Value Line to double earnings in the next five years, has actually doubled earnings in the past 5 years, is selling at price-earnings multiples (P/E’s) that are 110 percent or less of Value Line’s projected earnings growth rate and has a safety rating of average or better. It was listed in the March 2008 BetterInvesting magazine.
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California Pizza Kitchen (symbol CPKI) is growing domestically and international. With shares stuck around $15, now is a great time to buy. The rapid international growth could someday be as good as Yum Brands (symbol YUM) Pizza Hut has seen.
The company split shares three for two in 2007. There is little debt on the company's balance sheet (70 million as reported foe first quarter 2008 earnings) compared with 12 million in cash. California Pizza Kitchen has just over 200 stores and is in the early stages of its expansion. The company currently has forty percent of its store count in the state of California. Announcements have been made to build stores in Mexico, the Philippines, and South Korea. There are agreements for 3o restaurants in South Korea over the next five years. The first store in Mexico was added in the third quarter of 2007. (The third is currently under construction.) The company also announced a letter of intent to add six stores in Dubai.
The company also offers frozen pizzas through a licensing deal with Kraft (symbol KFT). This deal has produced double digit growth for the company. California Pizza Kitchen will soon be available in freezers as a microwavable single serve frozen pizza.
The shares at $15 are trading at two times book value. The price divided by sales is very reasonable at 0.6. The company announced that it opened five stores in the first quarter of 2008 and is on pace to open 12 for fiscal year 2008. California Pizza Kitchen recently raised guidance for 2008 and now expects a profit of .56 to .65 cents per share.
I recommend buying the stock at or below $15. I see the stock trading back up at $20 within a year.
Price at post: $14.59 05/21/08
Target Price: $20.00 05/21/09
Please check out my blog at stockworldpicks.blogspot.com

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