Oct 25, 2014
Click here for this week's charts.
For the US equity markets, the direction from here appears to driven by corporate profit reports:
The working range for the Dow Jones Industrial Average appears between the September 17350 high and the October 15855 low. A range bound market driven by corporate results and resulting capital flows can benefit investors.
1. Get paid to wait
2. Have a clear Fixed Income strategy away from equity dependency, cash, fixed maturity bonds, etc.
3. Buy discounts that pay more on down days—Q4 is tax loss selling season, look for bargains through New Years!
4. Sell premiums that pay less on up days
Private equity firm first consumed Dunkin Donuts and then Dunkin gobbled up all of Baskin Robbins Ice Cream! The resulting increase in girth led to a 36% increase in profits year over year. Donuts in the morning! Ice Cream in the afternoon! But the real story are the innovations that combined two entities that generally lose money during alternate times of day while Carlyle Feasted on cash flow that the combination returned, after getting its capital back, then IPO’d the combination as Dunkin Brands. A case study on producing high rates of return through business innovation and cash flow management.
Dunkin Brands' reported a 36 percent rise in quarterly profit as more customers visited its coffee and doughnut chain, Dunkin Donuts, in the United States. After the earnings announcement, the company's shares rose in premarket trading. The company, which also owns the Baskin-Robbins ice cream brand, said net income rose to $54.7 million, or 52 cents per share, in the quarter ended Sept. 27, from $40.2 million, or 37 cents per share, a year earlier. Sales at established Dunkin' Donuts franchises in the United States, its biggest business by revenue, rose 2 percent in the third quarter. Total revenue rose 3.4 percent to $192.6 million. Last month, the chain opened its first two full Dunkin' Donuts restaurant locations in California. The expansion is part of a larger plan to grow to more than 1,000 total restaurants over the long run in the state.
—CNBC contributed to this report.
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