Stock of the Week

Performance of Our STOCK OF THE WEEK selections are listed here. For comparison purposes, we show equal investments in the S&P 500 index and Treasury Bonds. The net results will show how our selections have fared relative to the broad market. We are experience amateur investors writing for entertainment and educational purposes only. We have enjoyed much success in the past but the past offers no guarantee of future performance

Thursday, May 19, 2005

J. Alexander's not your Normal Restaurant

STOCK OF THE WEEK

The oil bubble has popped. Consumers are relieved. After the bills are paid there's a little something left over. It's time to go out to eat.

symbol JAX trades on the American Stock Exchange. The restaurant was formed by three Nashville businessmen in 1971. They operate 27 locations through out Tennessee, Kentucky, Alabama, Florida, Georgia, Louisiana, Ohio, Illinois, Michigan, Kansas, Colorado, and Texas. Jack C. Massey was the company’s principal shareholder, and served as chairman until his death in 1990.

Jack Massey one of the legends in American business, was one of the first health care pioneers founding Hospital Corporation of America (HCA). He is best known in the restaurant industry for his purchase of Kentucky Fried Chicken from Colonel Harland Sanders in 1962. He was chairman of KFC when it listed on the New York stock exchange in 1981. He is the only person to have chaired three companies that listed on the New York Stock Exchange.

Lonnie J. Stout, II is the Company’s current Chairman President and CEO. Under his direction, the company has repositioned all of its assets exclusively into upscale casual dining. The objective is to develop a contemporary American restaurant that focuses on high quality food, outstanding service and great value, but not to rely on gimmicks or themes to be successful. Their concept is an absolute commitment to quality in every aspect of the business. Fresh, high quality, prepared in-house food is the backbone of the concept.

J. Alexander’s differs from most casual dining concepts. The company uses a variety of architectural designs and building finishes to provide its guests with the most attractive environments in the restaurant industry. Original artwork is used as décor accents. J. Alexander’s is not a cookie cutter concept! They are a collection of restaurants dedicated to providing the best dining experience in their segment of the industry. Featuring an interesting array of in-house chef prepared products. Their award-winning menu features hardwood-grilled steaks, baby back ribs, daily fresh seafood selections, soups, burgers and sandwiches.

1 Comments:

At 4:33 PM, Anonymous Anonymous said...

I have owned JAX for several years and bought most of my holdings under $3. Even though it has made a nice run, I do not plan on selling soon because I believe it is still undervalued.

An interesting thing about JAX is the real estate play aspect. Jax owns the land for 15 of the 27 properties.

from the 10k...

"... The Company has generally preferred to own its sites because of the long-term value of real estate ownership. However, because of the Company’s current development strategy, which focuses on markets with high population densities and household incomes, it has become increasingly difficult to find sites that are available for purchase and the Company has leased the sites for all but two of its restaurants opened since 1997."

"Item 2. Properties

As of January 2, 2005, the Company had 27 J. Alexander’s casual dining restaurants in operation. The following table gives the locations of, and describes the Company’s interest in, the land and buildings used in connection with the above:"

this is the bottom line....

Site and Building Owned by the Company - 15

Site Leased and Building Owned by the Company - 8

Space Leased to the Company - 4

Total - 27

The 15 "Site and Building Owned" properties were generally the earliest properties (prior to 1997)...only recently have they turned to leasing.

Nine of the properties (an aggregate book value of $25,209,000) secure a mortgage loan.

again from the 10k..

"The mortgage loan is secured by the real estate, equipment and other personal property of nine of the Company’s restaurant locations with an aggregate book value of $25,209,000 at January 2, 2005."

How much is the real estate purchased prior to 1997 worth now? I am not sure but, if you believe that there was significant appreciation in the real estate, that does not seem to be reflected on the balance sheet.

 

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Thursday, May 19, 2005

J. Alexander's not your Normal Restaurant

STOCK OF THE WEEK

The oil bubble has popped. Consumers are relieved. After the bills are paid there's a little something left over. It's time to go out to eat.

symbol JAX trades on the American Stock Exchange. The restaurant was formed by three Nashville businessmen in 1971. They operate 27 locations through out Tennessee, Kentucky, Alabama, Florida, Georgia, Louisiana, Ohio, Illinois, Michigan, Kansas, Colorado, and Texas. Jack C. Massey was the company’s principal shareholder, and served as chairman until his death in 1990.

Jack Massey one of the legends in American business, was one of the first health care pioneers founding Hospital Corporation of America (HCA). He is best known in the restaurant industry for his purchase of Kentucky Fried Chicken from Colonel Harland Sanders in 1962. He was chairman of KFC when it listed on the New York stock exchange in 1981. He is the only person to have chaired three companies that listed on the New York Stock Exchange.

Lonnie J. Stout, II is the Company’s current Chairman President and CEO. Under his direction, the company has repositioned all of its assets exclusively into upscale casual dining. The objective is to develop a contemporary American restaurant that focuses on high quality food, outstanding service and great value, but not to rely on gimmicks or themes to be successful. Their concept is an absolute commitment to quality in every aspect of the business. Fresh, high quality, prepared in-house food is the backbone of the concept.

J. Alexander’s differs from most casual dining concepts. The company uses a variety of architectural designs and building finishes to provide its guests with the most attractive environments in the restaurant industry. Original artwork is used as décor accents. J. Alexander’s is not a cookie cutter concept! They are a collection of restaurants dedicated to providing the best dining experience in their segment of the industry. Featuring an interesting array of in-house chef prepared products. Their award-winning menu features hardwood-grilled steaks, baby back ribs, daily fresh seafood selections, soups, burgers and sandwiches.

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