-0.69%
-0.80%
The news out of Greece could not make the markets budge yesterday. The same could be said for the situation in Syria. Iran has become political tabloid folly but is not market moving. I highly doubt we will get much movement today in the markets as well.
Yet, there are some earnings today that have significance such as Coca-Cola (KO), Northrup Grumman (NOC) and Walt Disney (DIS). By the way, I understand that Eli Manning is going to Disney now that he won the Super Bowl. Restaurant earnings are being delivered in rapid fashion. Yum Brands (YUM) reported an excellent quarter with strong comps domestically and in China last evening. The company’s conference call is this morning. I still think that stock is due for some profit taking and I hold a small short position. After the close today some of my favorite chains which I follow for my newsletter, the LakeView Restaurant & Food Chain Report, Buffalo Wild Wings (BWLD) and Panera Bread (PNRA) are set to report.
Open Table (OPEN) also reports after the close. Nearly 60% of the outstanding shares are held short. This stock is going to surge or purge. I just can’t tell you which way the stock will wind up when the music stops. I will tell you this much – be an observer and not a player with OPEN. Above all, don’t even think about playing OPEN options for the earnings report.
Have you noticed the nice move in Bank of America (BAC) stock? I still believe that this stock has room to run. Recall my article on BAC from last September when I stated that BAC was a buy. Of course it got a bit scary when the stock dipped below $5. Now I believe that it will make it above $10.
I raised some more cash yesterday and have been building a list of stocks that I am looking to purchase. Once again, I am looking for a brief and shallow pullback. Patience is the key and anyone who knows me is fully aware that I have plenty of patience.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long BAC, PNRA and BWLD and short YUM — although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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You can email Scott at [email protected]
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