MarketFoolery: 03.05.2014
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 5 March 2014
⏱️ 19 minutes
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Summary
Smith & Wesson soars on good earnings, while Bob Evans hits a bump in the road. Plus we analyze the investing opportunities in a growing industry: marijuana.
Transcript
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| 0:00.0 | It's Wednesday, March 5th. |
| 0:04.0 | Welcome to Market Fullery. |
| 0:05.0 | I'm Chris Hill joining me in studio today from Motley Fool Funds, Bill Barker, and from |
| 0:09.4 | Motley Fool 1, Brian White. |
| 0:12.0 | Happy Wednesday, gentlemen. Good to see you. |
| 0:13.4 | Thank you. |
| 0:14.4 | We've got some earnings news we're going to get to, Bob Evans, Smith and Wesson, |
| 0:19.0 | and we're going to talk about the potential for investing in one of the growing trends of the last couple of |
| 0:25.7 | years and I'm referring of course to marijuana but let's start with Bob Evans the third quarter |
| 0:32.4 | results they came in lower than expected, they lowered guidance, |
| 0:37.8 | and I guess maybe not a surprise, Brian, when you consider that, look, we've talked about this before there are a lot of |
| 0:44.2 | companies out there that are blaming the weather I think in the case of Bob Evans when |
| 0:48.2 | you look at where their locations are in the US and the highest concentration is the northern Midwest |
| 0:56.0 | which has just gotten pummeled by this winter. Maybe not a surprise. |
| 1:01.5 | All that being said the shares down about 8% this morning so far. |
| 1:06.6 | Yeah, I mean, they already said that it looks like their February same store sales will |
| 1:10.8 | be down almost 7%. |
| 1:12.3 | So it looks like it's going to continue on and |
| 1:14.2 | that's probably you know the main driver of lowering route look you know the |
| 1:20.6 | weather is the weather is legit we've talked about this before Chris I mean this is one of the times one year where actually you know the legend the weather story is a legit story. There was also some you know Bob, Bob Evans had some cost issues, but the primary |
| 1:34.4 | factor was traffic. You know, the weather has just reduced their traffic flow. |
| 1:37.8 | I'm a little surprised at the performance of this I guess the reason I'm surprised by that is I don't think of Bob Evans as having |
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