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Big Apple Bagels
Posted by: DavidWX (IP Logged)
Date: October 19, 2013 02:29PM

The May 2013 Microcap magic formula newsletter stock was Big Apple Bagels, with a target price of $1.00. However, if there we no new franchises, $.9 was considered a possible target, and most of that growth has already been seen.

Looking at the most recent earnings numbers, there is some small growth, but not enough to justify holding onto the stock. On the other hand, I would hate to sell it if the franchise brand is just catching on, and the activist investor mentioned in the report has just bought a little more stock.

Anyone heard anything?

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Re: Big Apple Bagels
Posted by: DavidWX (IP Logged)
Date: November 16, 2013 04:34PM

With the poison pill, the independent investors don't seem able to buy much more stock, and they don't seem to have enough leverage to make changes. Even if this business does well, the lions share of the benefits may make it to the management team in various ways. Microcap magic formula stocks have sometimes done very well for me in the past, but I no longer see much of an upside to this stock. Given that my trades are in an IRA and I won't even benefit from a tax loss, does anyone see any reason to hold onto this stock that I'm missing? I haven't forgotten the relatively safe five percent dividend, which isn't bad, but not quite enough for those of us seeking serious Alpha through the study of value investing and insider trading.

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