Buying more losing tickets
July 14, 2006 | Filed Under Investing in stocks | Leave a Comment
I bought 2000 shares/stocks in a growth company with P/E ratio of 18-19 a few months ago. Was a good deal I thought. Since then, the share price have declined and the company is trading at a P/E ratio of 12 and next year (forward) P/E of 7. When the shares started declining I bought another 1000 shares. Two days ago I bought an additional 1000 shares. The last two days there have been a further decrease in the valuation of the company.
I am considering to add another 2000 shares if the forward P/E falls below 5.
Will post a new update about this in 1 years time. Hopefully the big bet has paid off then.
If not, I can always start a saving my change blog.
Healthy fast food: A profit opportunity for investors and entrepreneurs?
June 18, 2006 | Filed Under Investing in stocks, Business Opportunities | 2 Comments
Are the burger and french fries on their way down?
A post at Genuine blog made me think of the big opportunity that lies in creating a chain of fast food restaurants like McDonald’s. The unique selling point would be to sell fast food, but healthy food.
The reason for this is that there is a trend favouring healthy options instead of the unhealthy fast food. But.. before I commited myself to start a chain of my own I was looking into if there are other, easier ways to profit from this trend.
Buy shares in Subway?
After I watched Morgan Spurlock’s “Supersize Me” a few years ago I realized that this may be the start of the end for unhealthy fast food outlets like McD and Burger King. I actively started to search for stock exchange listed restaurant chains and fast food outlets that were offering a more healthy product in order to buy shares(stocks) for a long term investment. I had a very hard time finding any! The obvious choice would be to buy shares in Subway. The sandwich chain who offers healthy and good tasting food. Unfortunelately, Subway is a private company.
Innocent is an unaccessible angel
An UK option which offers healthy and good tasting drink products is smoothie producer Innocent. Unfortunelately, they are also a private company and therefore unaccessible for the small investor.
Do I need to make the healthy food myself?
Seems difficult to locate publicly listed healthy companies who compete with Burger King, McDonald’s and Dominos Pizza. Do you know any? Please leave a comment. At this stage, if I am gonna profit from this trend I need to either do it myself, or to go short in the big burger shares.