Here's something for you fundamental types.
I mentioned KKD this morning just prior to the market opening. KKD has been a bright spot in a down market. They will not only beat earnings estimates yet again, but they will announce they expect earnings to rise next year.
The homeboys have held up because of earnings, KKD will too.
In looking back at their history, the stock usually rises 5-10 dollars per share around the earnings announcement. Then it gives back some profits but yet continues to climb some more, in spite of its 100 PE ratio.
Earnings are coming out in a couple of weeks, March 8 to be exact. In a declining market, I look for smart money to gravitate towards companies that are showing real earnings and real growth. KKD has both.
From a technical standpoint, KKD showed a three white soldier pattern last week. This is one of the most bullish patterns available in candlestick charting. You buy weakness off the three white soldier pattern, and I did.
To add strength to the pattern, $35 provided strong support and was cemented with a hollow red candle at the bottom of a recent trend. It don't get no better than that!
The stock re-tested support and has responded positively and is now rising above moving averages.
It looks to be a good ST pick for earnings, sell on the profit taking and then re-establish a longer term position.
That's the way I plan on trading it.
Weshallsee!
stockcharts.com[h,a]daclyiay[pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
dabum
EDIT - PS - If KKD should close below $35, head for the hills. |
