NEW BULLISH Plays
The Kroger Co. - KR - close: 33.76 change: +0.33
Stop Loss: 32.40
Current Gain/Loss: unopened
Entry on April -- at $--.--
Listed on April 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: Yes, see below
Why We Like It:
Kroger's business seems to be firing on all cylinders and the stock has been enjoying significant upward momentum. It's not surprising why investors are interested in this stock. The company has been raising its dividend, increasing its stock buybacks, and beating estimates on both the top and bottom line. Plus management recently raised their guidance at their last earnings report.
Shares of KR are now hitting new 13-year highs. We should take note of its old highs. The closing high was $34.16 and the intraday high was $34.91 from March 1999. These levels could be potential overhead resistance. Yet it was so long ago they may not matter anymore. If you're worried about KR seeing resistance at these levels then you may want to wait for KR to close above these levels before initiating positions.
I am suggesting we use a trigger to launch positions at $33.85. If triggered our multi-week target is $36.50.
FYI: KR should begin trading ex-dividend on May 13th, 2013. The quarterly dividend should be 15 cents.
Trigger @ 33.85
Suggested Position: buy KR stock @ (trigger)