Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, February 23, 2007

Article Excerpt

WENDY’S INTERNATIONAL INC. $33.29, New York symbol WEN, plans to buy back up to $300 million worth of its stock in the next few weeks, as part of a plan which it hopes will enhance stockholder value. It had $457.6 million ($4.78 a share) in cash at the end of 2006. Share buybacks boost per share earnings and increase the proportionate ownership of the remaining stockholders. But Wendy’s stock will make little progress until it improves the performance of its restaurants. We now feel Wendy’s holders should sell. CONAGRA FOODS INC. $25.53, New York symbol CAG, has recalled some of its Peter Pan peanut butter due to possible salmonella contamination. This will cut its earnings by about $0.07 a share; ConAgra expects to earn between $1.28 a share and $1.33 a share in its fiscal year ending May 31, 2007, excluding non-recurring items. It’s unlikely the recall will permanently harm ConAgra, although it could face the customary class-action nuisance lawsuit. Meanwhile, ConAgra is…