Just had someone try and give me the hard sell on buying 200 shares of Wendy’s over the phone. Guy sounded like he was in a boiler room pretty much screaming at me to get in now. Reminded me of the old football days of getting a pick from a 1-800#. Guy wouldn’t take no for an answer and when I hung up on him he called back even more adamant about getting me in. Check out Wendy’s because supposedly it is about to go thru the roof… Something about buy on the rumors and sell on the news he kept saying.
I hope you told him that their P\E was ridiculous compared to like stocks (MCD, BKW) and that you would never pay more than a 15-17 multiple on a “burger stock”. Also point out that their profit margin (1.54%) is slim compared to MCD (19.97%) and BKW (16.82%). BKW makes 5 times the money with only half of the sales ($215 mil on 1.28 bil in sales) compared to WEN with 38 mil on 2.5bil in sales. Tell him to call you back when they change their management and Wendy’s becomes viable in the market place again. If that doesn’t work, tell him you get brain freeze from the frostee…
He said some investor is acquiring stock at a rapid pace and there will be a takeover soon. I wish I was more knowledgeable in the stock market to hit him with information like you thru out. Not even sure how or why the guy called our office. We sell fasteners and welding supplies.
He said some investor is acquiring stock at a rapid pace and there will be a takeover soon. I wish I was more knowledgeable in the stock market to hit him with information like you thru out. Not even sure how or why the guy called our office. We sell fasteners and welding supplies.
He can't know that legally unless it is already published to the public (or it would be insider trading). If it's already public, then the market has already priced the stock accordingly. There is really no such thing as a legal "stock tip" of such nature.
Our company just got acquired a few weeks ago. Nobody knew about it except a handful of high level executives (board members really). When it was announced publicly, the stock literally shot up in the blink of an eye to the offer price of the purchasing company.