Walgreens ratios - latest quarter

It's been a while since I update this blog. Gotta work harder. I've added a small position on Walgreens and here are some ratios. Will keep working on the annual/quarterly report.

Universal Display PANL

It had a great run already for the past year but I think the stock might still have greater potential and worth watching.
OLED technology for displays. Its technology has been used in a few phones and the potential lies mainly in its improved technology, cost reduction and then of course the big guys' adoption (Samsung, etc).

S&P 500 3/25/2011

The market did bounce back after 3/16 and if you bought then and now you could have 50~60 points on SP500. where will the market go now? Not sure. I want to be bullish as the economy recovery is definitely there. And there are still money on the sidelines. However, the inflation, rate increases upcoming should impact the economy negatively as I see it. In addition, when the QE2 ends, will there be enough money pushing the market higher? 

Market summary - 3-16-2011

treasuries are gaining support once again as people rush out of the equity market. 

Tech is hit the hardest and you should also look forward to a stronger comeback when this correction is over.

It's really messy for the past days: "oil crisis" & nuclear threat. And the worst part is the uncertainty. You can read it from SP500 chart easily. It seems the topping process was confirmed.

http://mzexcel.blogspot.com/2011/02/market-summary-2-22-2011.html

 Then technicians will say it's just the due correction people have been waiting for. I agree with them: market rally too much too fast. So far it's about 100 points off the 1350 high. The downside is still there and I'm guessing maybe another 30 points off might yield a bottom. Well, it's just an optimistic guess. In case Japan's situation turns to the worst scenario this correction should last longer.

However, in my opinion, this really is the time to be bullish and watch your favorite stock and buy when the panic hit your stocks. 

Buffalo wild wings analysis (3-6-2011)

BWLD has PE over 20 and viewed as a growth stock. The restaurant looks really sporty and as their own words put it: wings, beer, & sports. I hope they can eventually adopt the healthy idea of organic chickens:). Well, you know, Chipotle does it and investors are really buying into it. But I'm not worried about Buffalo wings not being too healthy as I assume the value proposition leans on sports environment more than just wings.

The restaurant just released their latest quarterly and 2010 yearly results.
 http://phx.corporate-ir.net/phoenix.zhtml?c=146403&p=irol-newsArticle&ID=1526559&highlight=
The numbers are pretty good and the recent Super bowl does help the outlook of the chain. And it plans to open 100 new stores in 2011 (both owned and franchised). The historical data shows that they own 35% of stores and franchise 65%. The royalty fee is about 5% of the franchise sales. I'm graphing the number of stores and the new open for the past few years.

The table in the graph just listed the Same Store Sales (also called comps). Retail industry view this measure as very important. It essentially tells you how a store's sales performed compared with last same period (A store has to be opened for over a year to be counted)

BWLD's comps are trending down although most of time in the positive territory which is a good thing: growth is still there. Considering the recession impact their performance looks good. And if you believe in the consumer confidence's coming back the comp sales should start to go north. 

Now let's look at the financial summary.

Most of the number looks good and top line growth is consistent there. There are two type of sales growth: same store sales growth and addition of new stores. 2010's growth is mainly the new stores they added. And the growth strategy is intact. If there is one thing investors should be concerned I would say the chicken price as you see the food price inflates all over the world now. Increase of chick cost would depress BWLD's margin for sure. Then the counter argument depends on the consumer's spending capability to see if the restaurant can pass on the cost to consumers. I say they can but we'll see.

The stock price spikes after the earning report but then start to pull back (see graph below). The short ratio is pretty high on the stock ~16.4% (from Yahoo Finance) and institution holding is around 87%. So it looks like there are many believers but also quite some disbelievers being short on it. 

I'm still bullish on it in the long term based on what the numbers are telling me. So I'll hold my long position. However if you take BWLD as trading stock, swing trade seems works pretty well. (Just personal opinions/observations, as always, your money your decision:)

Market summary - 2-22-2011

Oil increases significantly and 10 year bond yield goes back to below 3.5% level as the equity market sold off badly today. It's one of the days you see some of your mutual funds change over 4%. If this kind of fluctuation continues you might consider this a topping process based on my past observations. 

Monthly return by sectors 1-28-2011

Despite last week's turmoil, most sectors still finish the month positively (still one trading day left though). Energy did come up to the top as I guessed last time and I think it will stay outperform others.