Talk about some volatility in the markets, what a week it has been. Gold is still all over the place, bunching all the way back up to $1290/oz. A couple of Wall Street biggies, McDonalds and Microsoft both get a downgrade. Long term interest rates bounced up to the 2.5% range on the 10 year note and 3.6% on the 30 year note. The equity markets went on a tear and set all kinds of new highs.
I'm still grinding numbers through my model and I found another buy I like. Take a look at Wendy's (WEN). It certainly isn't the industry Titan like McDonalds but it has remade itself after the turmoil of the last few years and is set up for a great turnaround success story. I'm looking for WEN to move up to $9.00 to $10.00 range but I have seen analyst estimate as high as $11 per share. This is a turn around play waiting to shoot up. WEN also has a $0.16 annual dividend (2.5% at current price levels) and WEN doubled their dividend in September 2012. I wouldn't be surprised to see the dividend increased again in the next 12 months.
Book Value - about $5.10 per share
Projected Earnings Growth - 15+% each of the next few years.
WEN Debt-to-Equity Ratio is 0.74, low for the sector
On the Technical Side - Broke through major resistant at $6.20 per share
I am going to add 700 shares of WEN to the Magic Money Portfolio at $6.81 per share (closing on July 18). I am also going to put a stop-loss on the stock at $5.50 per share.
I need to do a little maintenance on the portfolio as well. I am putting a stop-loss on IAG at $3.90 and at $22.75 on GE.
07 June 13 - 1000 shrs IAG @ $5.29 per share. (BUY)
13 June 13 - 500 shrs AA @ $8.20 per share. (BUY)
21 June 13 - 100 shrs DUK @ $65.58 per share. (BUY)
28 June 13 - 200 shrs GE @ $23.19 per share. (BUY)
28 June 13 - IAG traded ex-dividend $0.125 per share
11 July 13 - 100 shrs SPLS @ $16.67 per share (BUY)
11 July 13 - IAG dividend disbursement, $0.125 per share, $125 (INCOME)
18 July 13 - 700 shrs WEN @ $6.81 per share (BUY)
Magic Money Machine Portfolio (18 July 2013)
Cash: $ 27,757.00
1000 shares IAG- $ 4.44 $ 4,440.00
500 shares AA - $ 8.21 $ 4,105.00
100 shares DUK - $ 71.15 $ 7,115.00
200 shares GE - $23.63 $ 4,726.00
100 shares SPLS - $16.60 $ 1,660.00
700 shares WEN - $6.81 $ 4,767.00
Total $49,858.00
(0.28%)
Stop-loss list
IAG - $3.90
AA - none at present
DUK - none at present
GE - $22.75
SPLS - $15.80
WEN - $5.50
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