newsletter signup


Smart Investing Newsletter Archive*

2017| 2016 | 2015 | 2014

Can Buffalo Wild Wings Add Some Spice to your Portfolio?

Tuesday, September 27th, 2016

The 529 Plan is a college savings plan that is often tossed around as a great option when it comes to saving for college.

There are two options for the 529 plan; the first is the prepaid option, where you can lock in the current tuition prices.

This sounds nice in principle, but there are some major concerns. What if your child does not want to attend a school that you prepaid for?

The second 529 plan is a savings plan, where you can contribute money and invest it so it grows, until you need to begin taking withdrawals for the child's school payments.

The first problem that arises here is the investment selection can be limited, which may make it difficult to make good financial investments.

Another problem is, what if your kid does not want to go to college? There are many different positions today that pay well and do not require a college degree.

If your child does not attend college you have a couple of options: You can roll the 529 plan to another beneficiary such as a niece or a nephew, or you can cash the 529 plan out.

Rolling the plan to another beneficiary avoids penalty, but it is hard to part ways with money you had initially intended for your child.

Cashing the 529 plan may result on a 10% penalty as well as income tax on the investment gains.

By choosing to invest in a 529 plan, you are limiting yourself to a limited number of options. It would be much easier to invest through a basic TOD account, and having it grow tax favored and then using those funds to pay for your kid's college with those proceeds.

Today's company of the day is Buffalo Wild Wings (BWLD).

The current price is $156.04 and the 52-week range is $122.25-$205.83.

Sales have climbed 17.9% over the last 12 months and EPS has risen 9.5%. Management effectiveness appears to be strong, as return on capital of 13.32 is above our target of 10.0 and return on equity of 16.23 is above our target of 15.0.

The current ratio of 0.53 is cause for concern, as it could create some liquidity problems down the road.

Even with a poor current ratio, the balance sheet appears to have some strength as debt/equity is only 23.1%. This falls well below the industry average of 318.1%.

Looking forward to December 2017, estimated EPS of $6.91 gives us a target sell price of $114.02.

Although we enjoy the restaurant, the stock appears to be overpriced.

Do you have a question or a company you would like us to take a look at?
Ask Us!

Upcoming Smart Investing Workshop
Thursday, Nov 2nd

Register Now

The Smart Investing Radio Show

with Brent & Chase Wilsey

Saturdays 8am (LIVE)
Sundays 5pm (REPLAY)

Newsletter

Latest Newsletter

Can Nvidia’s Stock Price Charge Higher?
Tuesday, October 17th, 2017

Nvidia (NVDA) has experienced astronomical returns over the past few years. Had you...

Video

Latest Video

KUSI News, October 17, 2017: Brent Wilsey discuss the DOW closing 3 points away from an all-time high.

KUSI: What's driving the market right now...

Oct 17th, 2017


 

Wilsey Asset Management Inc BBB Business Review