I like Wendy's as a long term investment and here's why...
The fundamentals are pretty solid. They've had a rising EPS for 5 years, and a falling stock price for years. They also have a stable growing dividend. Their debt situation is stable. In the last month there has been a large volume of insider buying, the most notable of which is insider John Mihn, Chief Legal Officer, with a share delta of 328%. Back in may Point 72 dropped a 13F that showed a 108% share delta on their position compared to Blackrock and Trian that are only slightly shaving their positions.
In terms of current price. It is bouncing around its 3 and 5 year lows and there is strong historical buying starting at $8 and ending at around $11. I consider it a big zone of support and the 5 year low is nestled a little above the midpoint of this zone.
In terms of a buying strategy...just DCA it. Buy like a share a week or whatever fits your personal risk.
The price may fall a little further. August is slow for the restaurant industry. I wouldn't expect this to experience the buying it deserves, retail or institutional, until after August. This could also serve as a trade catalyst for people looking for margin or options action. Might come in September when their next earning call drops. I would be prepared to DCA for six months though. That's how I treat all of these situations.
The fundamentals are pretty solid. They've had a rising EPS for 5 years, and a falling stock price for years. They also have a stable growing dividend. Their debt situation is stable. In the last month there has been a large volume of insider buying, the most notable of which is insider John Mihn, Chief Legal Officer, with a share delta of 328%. Back in may Point 72 dropped a 13F that showed a 108% share delta on their position compared to Blackrock and Trian that are only slightly shaving their positions.
In terms of current price. It is bouncing around its 3 and 5 year lows and there is strong historical buying starting at $8 and ending at around $11. I consider it a big zone of support and the 5 year low is nestled a little above the midpoint of this zone.
In terms of a buying strategy...just DCA it. Buy like a share a week or whatever fits your personal risk.
The price may fall a little further. August is slow for the restaurant industry. I wouldn't expect this to experience the buying it deserves, retail or institutional, until after August. This could also serve as a trade catalyst for people looking for margin or options action. Might come in September when their next earning call drops. I would be prepared to DCA for six months though. That's how I treat all of these situations.
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면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.