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Investment Analysis Clubs / Pencils Palace


Subject:  Re: Pencils Fund Purchase: Nathan's Famous Date:  7/18/2007  3:09 PM
Author:  SpocksBrainRtns Number:  4360 of 7325

I think Nathan's will easily be able to grow 20% annually for the next three years and sport a P/E of 25.

But how will they grow 20%? The branded program seems to be in a slowdown. Franchise counts are static. The company hasn't announced intentions for their cash (and I've asked). What makes you confident that the company will increase earnings at a 20% rate for the next 3 years?

By the way, on your EPS number - Nath reported 5.208 income from continuing ops. Q4 share count was 6430 so latest 12m EPS is 81c.
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