NEW BEARISH Plays

BJ's Restaurants - BJRI - close: 29.40 change: -0.39

Stop Loss: 30.35
Target(s): 25.25
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 483 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of BJRI are clearly not participating in the market's rally. Shares had been stuck in a choppy sideways range for months. Then BJRI reported earnings on Feb. 19th. The results were in-line with estimates although same-store sales only grew +3% and its operating margins inched lower. The stock spiked down following the earnings report, hitting an intraday low of $29.00.

Right now the restaurant stocks should be facing bearish headwinds with the recent increase in the payroll tax and rising gasoline prices taking money out of consumers wallets for discretionary spending like eating out. BJRI has been showing relative weakness and now it's poised to breakdown below the February low at $29.00.

I am suggesting a trigger to open bearish positions at $28.85. If triggered our target is $25.25. The most recent data listed short interest at about 12.5% of the small 24.6 million share float. Readers may want to consider buying the put options instead of shorting the stock as a way to limit your risk to your initial investment.

Trigger @ 28.85

Suggested Position: short BJRI stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Apr $30 PUT (BJRI1320p30) current ask $1.60

Annotated chart: