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New Long Plays

None today.
 

New Short Plays

Play Editor's note: The markets continue to look very bearish and today's late afternoon sell-off only reinforces the technical damage done to the major averages. It would be tempting to add a bunch of new shorts to the play list but we know nothing goes straight down for very long and we're running into the risk of a sharp snap-back rally.


Ryan's Restaurant - RYAN - cls: 12.57 chg: -0.11 stop: 13.01

Company Description:
Ryans Restaurant Group, Inc. headquartered in Greer, South Carolina is a leading restaurant company operating more than 340 Ryans Grill, Buffet & Bakery and Fire Mountain restaurants in 23 states primarily in the Southern and Midwestern United States. The company employs approximately 23,000 team members and serves more than 110 million customers annually. (source: company press release or website)

Why We Like It:
Shares of RYAN have produced a classic (bearish) head-and-shoulders pattern. Shares are currently flirting with support at the neckline of the pattern and technical support at its simple 200-dma. The technical indicators are bearish on the daily chart and the weekly chart's MACD has recently produced a new sell signal. The P&F chart for RYAN points to a $9.00 target. We suspect that investors are worried how high fuel costs will impact family dining chains like RYAN. We are going to suggest a trigger to short the stock at 12.29, which is under Wednesday's low. If triggered our target will be the $11.35-11.25 range. Traders should note that the most recent data puts short interest at 5% of RYAN's 42 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/06 (confirmed)
Average Daily Volume: 268 thousand
 

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