Burger King on NYSE

Scarpozzi

Lifer
Jun 13, 2000
26,392
1,780
126
Their stocks aren't looking too good....still hovering around $17.75....expected to fall some more.
 

Legend

Platinum Member
Apr 21, 2005
2,254
1
0
Their P/E is about 40? Yeah, they'll drop or give terrible returns most likely. Not a good investment.
 

Scarpozzi

Lifer
Jun 13, 2000
26,392
1,780
126
Originally posted by: Legend
Their P/E is about 40? Yeah, they'll drop or give terrible returns most likely. Not a good investment.
This is kind of a repost talking about BK, but the first thread I read about this was actually what made me want to jump into the stock market for the first time. If anyone has any stock advice, PM me. I'd love to hear it. I just joined Scottrade and will soon be buying something to get my feet wet. I want to learn how to buy and sell to bank cash on weekly or monthly fluctuations without trying to strike it rich. I just want to get a decent ROI.
 

dabuddha

Lifer
Apr 10, 2000
19,579
17
81
Topic Title: anyone watching Burger King's Desperation on NYSE tonight?

:confused:

parody attempt?
 

Legend

Platinum Member
Apr 21, 2005
2,254
1
0
Originally posted by: Scarpozzi
Originally posted by: Legend
Their P/E is about 40? Yeah, they'll drop or give terrible returns most likely. Not a good investment.
This is kind of a repost talking about BK, but the first thread I read about this was actually what made me want to jump into the stock market for the first time. If anyone has any stock advice, PM me. I'd love to hear it. I just joined Scottrade and will soon be buying something to get my feet wet. I want to learn how to buy and sell to bank cash on weekly or monthly fluctuations without trying to strike it rich. I just want to get a decent ROI.

Here's my Advice: STOP.

Read:

http://www.amazon.com/gp/product/007142...1/102-6480557-5317736?%5Fencoding=UTF8
http://www.amazon.com/gp/product/140008...1/102-6480557-5317736?%5Fencoding=UTF8

BK is overpriced.


If you're going to dump money in single companies, then I would suggest something like Altria (Phillip Morris), General Mills, and other established large companies with decent prices. They pay high dividends, are very stable, and in the past 50 years have given an average of ~15% annualized interest.

But first I'd recommend making a portfolio using the Modern Portfolio Theory with some low cost index or mutual funds. Vanguard has a lot of good ones.
 

Scarpozzi

Lifer
Jun 13, 2000
26,392
1,780
126
Originally posted by: dabuddha
Topic Title: anyone watching Burger King's Desperation on NYSE tonight?

:confused:

parody attempt?
Yeah.... a weak one, but I was going to post on this anyhow. :p
 

Scarpozzi

Lifer
Jun 13, 2000
26,392
1,780
126
Originally posted by: Legend
Originally posted by: Scarpozzi
Originally posted by: Legend
Their P/E is about 40? Yeah, they'll drop or give terrible returns most likely. Not a good investment.
This is kind of a repost talking about BK, but the first thread I read about this was actually what made me want to jump into the stock market for the first time. If anyone has any stock advice, PM me. I'd love to hear it. I just joined Scottrade and will soon be buying something to get my feet wet. I want to learn how to buy and sell to bank cash on weekly or monthly fluctuations without trying to strike it rich. I just want to get a decent ROI.

Here's my Advice: STOP.

Read:

http://www.amazon.com/gp/product/007142...1/102-6480557-5317736?%5Fencoding=UTF8
http://www.amazon.com/gp/product/140008...1/102-6480557-5317736?%5Fencoding=UTF8

BK is overpriced.


If you're going to dump money in single companies, then I would suggest something like Altria (Phillip Morris), General Mills, and other established large companies with decent prices. They pay high dividends, are very stable, and in the past 50 years have given an average of ~15% annualized interest.

But first I'd recommend making a portfolio using the Modern Portfolio Theory with some low cost index or mutual funds. Vanguard has a lot of good ones.

Thanks for the advice. I'm definitely interested in stocks that pay dividends if they're not too high up front. I don't have that much to invest at this time because I'm pretty young. I'm going to start out with $500 as soon as I can spare it....then start doing the research.
 

SearchMaster

Diamond Member
Jun 6, 2002
7,791
114
106
Originally posted by: Scarpozzi
Originally posted by: Legend
Originally posted by: Scarpozzi
Originally posted by: Legend
Their P/E is about 40? Yeah, they'll drop or give terrible returns most likely. Not a good investment.
This is kind of a repost talking about BK, but the first thread I read about this was actually what made me want to jump into the stock market for the first time. If anyone has any stock advice, PM me. I'd love to hear it. I just joined Scottrade and will soon be buying something to get my feet wet. I want to learn how to buy and sell to bank cash on weekly or monthly fluctuations without trying to strike it rich. I just want to get a decent ROI.

Here's my Advice: STOP.

Read:

http://www.amazon.com/gp/product/007142...1/102-6480557-5317736?%5Fencoding=UTF8
http://www.amazon.com/gp/product/140008...1/102-6480557-5317736?%5Fencoding=UTF8

BK is overpriced.


If you're going to dump money in single companies, then I would suggest something like Altria (Phillip Morris), General Mills, and other established large companies with decent prices. They pay high dividends, are very stable, and in the past 50 years have given an average of ~15% annualized interest.

But first I'd recommend making a portfolio using the Modern Portfolio Theory with some low cost index or mutual funds. Vanguard has a lot of good ones.

Thanks for the advice. I'm definitely interested in stocks that pay dividends if they're not too high up front. I don't have that much to invest at this time because I'm pretty young. I'm going to start out with $500 as soon as I can spare it....then start doing the research.

No offense, but that doesn't make much sense. You should be looking for growth stocks, not dividend stocks. The dividends on a $500 investment are going to be fairly small. Then you have to declare that income, pay taxes on it, etc. You'd be better off going for stocks that will grow with time - dividend stocks are more appropriate for large portfolios or those looking for minimal risk (e.g. retired or close to retirement). The exception would be a DRIP program (dividend reinvestment), where you invest directly with the company instead of through a broker, and any dividends go right back into purchase of shares. Examples of companies that do this are Home Depot and Walmart.
 

Legend

Platinum Member
Apr 21, 2005
2,254
1
0
He could use an IRA to avoid taxes on dividends, and then reinvest dividends. If companies like Altria continue to perform like the last 50 years (19.75%), that $500 could be > 1,000,000 in 40 years. But you can't predict that, and that's why I opt for MPT.

Value stocks outperform growth stocks in the long haul. Growth stocks tend to suck because people expect that growth and the stocks get overpriced. You have to pick a growth stock that significantly grows more than expected to get excellent returns.

Risk isn't needed. Diversifiy a portfolio with something like:

20% Large Cap International Value Index
20% Small-mid cap International Value Index
20% Large Cap Value Domestic
20% Small Cap Value Domestic
10% REITs
10% Fixed income

Not as aggresive as investing in single stocks, but historically these types of portfolios have raked in 12-16% annualized average interest.