I purchased two ETF's today. ETF's are Exchange Traded Funds and are basically like a mutual funds where they hold a basket of stocks but the expense ratio is much cheaper and the holdings typically don't change like a managed mutual fund. They are traded just like stocks. For example the IShares S&P Global Energy Index (IXC) which I bought today for $138.00 per share has a miniscule expense ratio of 0.48 percent. It holds energy companies and the top 10 holdings are Exxon, British Petroleum, Total, Chevron, Royal Dutch Shell, Schlumberger, ENI SPA, Occidental Petroleum , BG Group. . The other ETF I bought was IShares S&P Global 100 Index (IOO). Purchase price was $83.32 and the top 10 holdings are Exxon, GE, Citigroup, Microsoft, BP, HSBC, Total SA, Chevron, Proctor & Gamble, and Johnson & Johnson. This ETF holds the 100 largest Global companies.
ETF's are a great way to diversify, low expenses, and great liquidity.
Friday, July 13, 2007
Thursday, July 5, 2007
Ruth's Chris Steak House (RUTH)
I bought shares today in Ruth's Chris Steak House (RUTH) at $17.27 per share. It trades at a P/E of 16.40 and has $1.05 per share earnings. The 52 week trading range is $16.72 to $23.00.
I owned this company previously on a short term basis and made a nice profit in a short amount of time.
Ruth's Chris Steak House, Inc., together with its subsidiaries, operates a steakhouse company. It operates company-owned and franchisee-owned restaurants in the United States. The company's restaurants offer food, beverages, and other services. As of July 1, 2007, it owned and franchised 107 locations worldwide. The company was founded in 1965 and is headquartered in Heathrow, Florida.
The nation's largest upscale steak-house chain was based in New Orleans when it made its Nasdaq debut in early August 2005. Three weeks later Hurricane Katrina hit.
Shares that opened at $19.80 lost more than a fifth of their value by the middle of November of that year. Ruth's stock has struggled to remain above water ever since, despite offering a robust growth rate and a compelling valuation.
Ruth's, now based in Heathrow, Fla., has a total of 106 company-owned and franchised restaurants. Expansion plans put it on track to have as many as 250 locations in six to eight years, and those restaurants are extremely productive. Ruth's return on capital stands at 19%, according to Reuters data, more than three times that of Morton's (MRT: 17.87, -0.09, -0.5%), its nearest competitor, and well above the 14% industry average. Meanwhile, return on equity stands at a very healthy 40%, almost twice the industry average.
Furthermore, the long-term investment thesis sounds persuasive, based on brand strength and Ruth's ability to replicate its highly productive restaurants in a variety of markets, both here and abroad.
I owned this company previously on a short term basis and made a nice profit in a short amount of time.
Ruth's Chris Steak House, Inc., together with its subsidiaries, operates a steakhouse company. It operates company-owned and franchisee-owned restaurants in the United States. The company's restaurants offer food, beverages, and other services. As of July 1, 2007, it owned and franchised 107 locations worldwide. The company was founded in 1965 and is headquartered in Heathrow, Florida.
The nation's largest upscale steak-house chain was based in New Orleans when it made its Nasdaq debut in early August 2005. Three weeks later Hurricane Katrina hit.
Shares that opened at $19.80 lost more than a fifth of their value by the middle of November of that year. Ruth's stock has struggled to remain above water ever since, despite offering a robust growth rate and a compelling valuation.
Ruth's, now based in Heathrow, Fla., has a total of 106 company-owned and franchised restaurants. Expansion plans put it on track to have as many as 250 locations in six to eight years, and those restaurants are extremely productive. Ruth's return on capital stands at 19%, according to Reuters data, more than three times that of Morton's (MRT: 17.87, -0.09, -0.5%), its nearest competitor, and well above the 14% industry average. Meanwhile, return on equity stands at a very healthy 40%, almost twice the industry average.
Furthermore, the long-term investment thesis sounds persuasive, based on brand strength and Ruth's ability to replicate its highly productive restaurants in a variety of markets, both here and abroad.
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