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Tuesday, March 8, 2011

Stock Market Rumors

Well, the rumors are back. Jack in the Box (symbol JACK) is going to take action to increase shareholder value by spinning off Qdoba as a separate company, or JACK is going to sell Qdoba, or JACK is going to sell the Jack in the box chain and use the proceeds to grow Qdoba much more rapidly. The stock is up today but on low volume, so it is hard to say that the market thinks very much of the rumors. Nevertheless, Jack has been rising no matter what direction the market takes.

Let me be clear: these are just rumors that I have been hearing. I do not know if they are true; in fact, they could be items planted by someone trying to pump the stock. I just want to call your attention to the stock once again since there has been some interesting and unexplained movement in it.

Disclosure: I remain long the stock. I also suggest that if you want to buy JACK, you do your own careful analysis and do not rely on these rumors.

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