Friday, August 15, 2014

Fwd: Sell Your Sandwich Stocks



---------- Forwarded message ----------
From: Rude Awakening <rude@agorafinancial.com>
Date: Fri, Aug 15, 2014 at 7:02 AM
Subject: Sell Your Sandwich Stocks
To: iammejtm@gmail.com


Casual dining takes a dive
Rude Awakening
August 15, 2014
 
 
Sell Your Sandwich Stocks
 
  • Casual dining takes a dive
  • The worst stocks on the market?
  • Plus: Gold gets boring...

 
Greg Guenthner coming to you from Baltimore, MD...

Greg Guenthner
Greg Guenthner
If there's one group of stocks you need to avoid right now, it's casual dining.

Restaurants stocks are cratering under the weight of some horrific earnings announcements. These mini-crashes are rippling across this once-trendy sector, crushing the trends of some high-flying industry mainstays and newer IPOs.

Our first victim is Red Robin Gourmet Burgers (NASDAQ:RRGB). At some point, you probably suffered through a child's birthday party at one of these family-friendly burger joints. But there's no party at Red Robin HQ today. The stock fell nearly 20% yesterday...

"Red Robin Gourmet Burgers was having one of the worst trading days in the stock's history Thursday, slumping to a 52-week low after a terrible quarterly report and further putting its five-year market winning streak in doubt," reports Yahoo! Finance.

Red Robin isn't one of those stocks forced to endure too many struggles lately. Yahoo! points out that Red Robin shares haven't had a negative year since 2008. In fact, the stock jumped 108% last year. Now, the stock finds itself in a bear market overnight. Shares are down 30% on the year.


Red Robin isn't the only restaurant stock falling face-first down the stairs. A couple of newer "upscale" fast-food joints are dealing with mini-crashes of their own...

Check out Noodles & Company (NASDAQ:NDLS). Noodles just went public about a year ago, skyrocketing nearly 150% during its first two weeks of trading. But it's been all downhill from there.

Yesterday, NDLS dropped more than 16% after missing second quarter earnings estimates and guiding lower for the year. As of this morning, this stock has almost round-tripped back to its IPO price. And it's not the only victim...

Investors who tossed their hard-earned money at Potbelly Corp. (NASDAQ:PBPB) as it doubled off its IPO price back in late September are also sitting on huge losses. The sandwich shop was crushed by--you guessed it--disappointing earnings back in July. It has yet to recover.

Notice a trend here?

Aside from just a handful of the top restaurant/upscale fast food chains (Chipotle being best-of-breed with year-to-date gains of 27%), these stocks will give your portfolio food poisoning. Avoid them at all costs.
 
 
 
 
 
You don't have to own an acre of oil-rich land to profit from the new American oil and gas boom. This free video shows you how to access 6 easy plays that could make you a millionaire… Click here now.
 
 
 
 
...
 
Rude Numbers
Targets, Predictions and Wild Guesses

 
45 acquisitions have helped 3D Systems Corp. grow over the past four years. Its latest is American Precision Prototyping (APP) and sister company American Precision Machining (APM)...
$202,850 is how much you'll pay for one share of Warren Buffett's Berkshire Hathaway stock today. The stock topped $200,000 for the first time yesterday...
$95.80 buys a barrel of crude this morning. Oil dropped more than 2% Thursday. Crude is trading at levels not seen since January...
$1,297 marks the spot for gold futures today. Gold is giving back its gains on the week as I type. It's down about $18 in early trading...
1,956 is where you'll find S&P futures this morning. Stocks are set for another green open...
 
...
 
Rude Trends
When to Buy... When to Sell

 
"Isn't this prediction getting a bit long in the tooth?" a reader asks about my guess that gold might move higher from here. "All I see is an endless narrow trading range. I'm being told that there are (or will be) shortages, but when I shop on dealers web pages I see large quantities of bars and coins and low premiums. I'm also getting a lot of email and snail mail from companies trying to sell me coins and bars of metal. If the price is going up, why are they all in such a hurry? This whole precious metals thing is getting really tiresome!"

I don't really know anything about shortages, coins, bars or anything like that.

But I do know a thing or two about trends...

In early 2013, some folks around the office thought I was sniffing glue when I said gold was headed toward a big drop. Yet here we are today...

I've been skeptical of gold's comeback power. But in fairness, the yellow metal is up more than 9% so far this year, while the S&P is up a measly 5%. I don't necessarily see the "endless narrow trading range" you're talking about. Actually, gold is posting a nice, big coil. Yes, its trading range is narrowing. But it could be building toward a breakout move. Only time will tell.

Still--as I've said all along--miners are the way to play any gold rally right now. It's been a bumpy ride, but the Market Vectors Gold Miners ETF (NYSE:GDX) has posted year-to-date gains north of 28%. Nothing tiresome about gains like that...

[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]
 
...
 
Ignore At Your Own Peril
Today's Must Read Links

 
 
 
BE SURE TO ADD dr@dailyreckoning.com to your address book.
 
 
 
Additional Articles & Commentary:

1
2

Join the conversation! Follow us on social media:

FacebookLinkedInTwitterRSS FeedGoogle PlusYouTube

 
 
 
 
The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here.

Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening.

Agora Financial© 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.

We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

 



--
Jeremy Tobias Matthews

No comments:

Post a Comment