5/01/2012

Creating Over Looked Value but still Hated by Wall Street

this was posted January 14, 2012. It was obvious the company was doing all the right things to improve shareholder value. Wall Street ignored these profound improvements but this blog attempts to "Exploit Market Anomalies With Data That Has Been Overlooked Underappreciated Or Ignored". This Mid Cap (PFCB) was ignored by the market for their critical overlooked improvements. Today the company announced they will go private at 1.09 billion or ~ 51.50 per share.

http://journalofvalue.blogspot.com/2012/01/creating-over-looked-value-but-still.html


PFCB: P.F.Chang's China Bistro, Inc

Price on post = $31.78
"owns and operates two restaurant concepts, P.F. Chang's China Bistro and Pei Wei Asian Diner. As of January 2, 2011, it owned and operated 201 full service Bistro restaurants and 168 quick casual Pei Wei restaurants; and operated 7 Bistro restaurants in Mexico and the Middle East under development and licensing agreements."


The short PFCB hidden value creation story.
52 week change -33%.

15% share count reduction from 2006 to the TTM.
Increase in cash balance.. 31 million (2006) to 72 million (TTM).

Total debt reduction by 16% from 2007 balance of 328.7 million to the TTM 275.1million.

32% increase in the top line from 2006 to the TTM. Revenues were 937.6 million (2006) to the TTM 1240.18 million .

3.10% current dividend yield

My initial GM% improvements was based on poor data but the GM% is about 18% over the past 3 years.

According to Gurufocus.com Joel Greenblatt and Whitney Tilson were buying shares at the end of 2011



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