Wednesday, April 29, 2015

A good lesson driven home hard: Zacks article on CLDN

So some writer for a paid advisory service at least had the balls to revisit an old idea that failed.  CLDN.  CLDN working on stage 2 drug study for some virus they inject, it helps cardiac cells, perhaps regenerate (or whatever, it was too hocus pocus to worry about) such that it would help those with numerous cardiac problems.  The writer suggested buying when the price was around 18 on Feb 27th, it went up some to 25.  There was one glaring issue with this though, something any investor should have their fingers on the pulse of.  Click image.


Beginning in late 2014 every insider transaction in this company was a SALE.
They did not believe in it themselves.
Some of them had salaries of half a million per year, still were selling.
WTF?

Novavax leadership has been buying.
The lesson is stick with companies whose senior people file purchases, not sales.

Thursday, April 16, 2015

ZOES v SHAK

I'm not local to SHAK, can't really try out the special sauce.  Market cap is just outrageous given current sales but the price action is incredible for those that own.  I gotta have some conviction in the story in order to own.  Good luck to all...

ZOES as a comp to SHAK seems like it could move in unison as a growth story but the story does not draw so much attention.  Perhaps from a good PR machine we get the IPO pop for lock up expiry?  Comparing ZOES to a couple other restaurants suggests there should be room to grow.  Comparing sales figures to market cap, they are inline with a MCD but have significant room to grow, plans to grow by 30 stores this year, have 32 leases signed, and want to double in size over the next four years.  Given this years figures alone, I think price in the 50's is doable in the right market.  This comparison considers higher market cap along the lines of CMG which is 5x sales.

Here is the confusion to me:  Nasdaq lists 100.15% institutional ownership.  I've never seen things this high and I do not understand.  http://www.nasdaq.com/symbol/zoes/institutional-holdings

1/4 shares are held short!  12 days to cover...

I think long term holders of ZOES, if management can execute, can expect 10-20x return.

My money is where my mouth is.