TAST: Carrols Restaurant Group (Price on 04/15/13 = $4.74)
Carrols Restaurant Group, Inc. is the largest Burger King franchisee in the world and
have operated Burger King restaurants since 1976. As of December 30, 2012 , they operated 572 Burger
King restaurants in 13 states. On May 30, 2012, they acquired 278 restaurants from BKC.
Carrols saw third quarter sales increase 87% to
$169.5 million, thanks in large part to the acquisition of 278 additional
Burger King restaurants. Carrol’s is a key beneficiary of Burger King’s goal to
be 100% franchised. BK’s emphasis on coffee sales should also help increase the
average meal cost. Carrols/BK’s coffee offering/emphasis of Seattle’s Best , a 2003
Starbuck’s acquisition, should help margins as they push coffee sales.
Gordmans Stores, Inc. is an everyday value price department store retailer. As of
March 25, 2013, the company operated 86 stores in 18 states. Gordmans Stores,
Inc. was founded in 1915 and is headquartered in Omaha, Nebraska.
GMAN has a solid balance sheet with virtually no debt. It trades at a strong valuation discount to its industry peers but posted a -48.08% 52 week stock return.
GMAN has a solid balance sheet with virtually no debt. It trades at a strong valuation discount to its industry peers but posted a -48.08% 52 week stock return.
Corinthian Colleges, offer
short-term diploma programs and associate, bachelor's, and master's degrees. Their
main program areas include health care, criminal justice, business, information
technology, transportation technology and maintenance, and construction trades.
In addition, they offer online degree for business, accounting, criminal
justice, paralegal and information technology. As of June 30, 2012, they had approximately
91,000 students and 15,200 employees, including 5,900 faculty of which 4,170
are part-time and 1,730 are full-time.
Note the large short position at 30% of float. So caution is
warranted.The stock is a mean reversion candidate with a -47.58% stock return for the prior 52
week period. The entire for profit education sector is under pressure from
litigation and future government funding.
Education & Training Services
ABFS: Arkansas Best Corporation
Arkansas Best Corporation provides freight transportation
services and solutions. As of December 31, 2012, the company operated
approximately 3,700 tractors and 20,000 trailers that were used in its line
haul and local pickup and delivery operations. Arkansas Best Corporation was
founded in 1935 and is headquartered in Fort Smith, Arkansas.
Trucking Industry comparisons
ABFS is trading at a discount
to its historical valuation. Valuation also trades favorable to industry
peers posting one of the worst 52 week stock returns.
Trucking Industry comparisons
SPPI: Spectrum Pharmaceuticals
Spectrum Pharmaceuticals, Inc., a biotechnology company,
engages in acquiring, developing, and commercializing prescription drug
products primarily in the areas of hematology and oncology.
The company was formerly known as NeoTherapeutics, Inc. and
changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum
Pharmaceuticals, Inc. was founded in 1987 and is based in Henderson, Nevada.
AGX: Argan Inc
Argan, Inc., provides development, consulting, engineering,
procurement, construction, commissioning, operations, and maintenance services
to the power generation and renewable energy markets for public utilities,
independent power project owners, municipalities, public institutions, and
private industry.
Argan, Inc. was founded in 1961 and is headquartered in
Rockville, Maryland.
