Status Updates From BEATING THE STREET by peter...

Talks about restaurants as an industry

Since delinquencies lead to foreclosures, this fall
in the delinquency rate suggested that Fannie Mae had already seen the worst.

With most stocks, a low price/earnings ratio is regarded as a good thing, but not
with the cyclicals. When the p/e ratios of cyclical companies are very low, it’s
usually a sign that they are at the end of a prosperous interlude.

S&L Overview:
- Current price
- When S&L selling < IPO price
-!!! When Earnings to Assets is as high as possible
- Over 5-10% in risky assets is red flag
- When REO (RE Owned) is on the rise is bad
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Merchandise inventory - You don’t want a company to have too much
inventory. If it does, it may mean that management is deferring losses by not
marking down the unsold items and getting rid of them quickly