Additional Trading Ideas:
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
MU, SGEN, ENDP, CCE, GCI, OSTK, EDU, TEN, PHH, X, XLRN, UNXL
NEW BULLISH Plays
Krispy Kreme Doughnuts, Inc. - KKD - close: 19.98 change: +0.14
Stop Loss: 19.19
Current Gain/Loss: unopened
Entry on October -- at $--.--
Listed on October 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.25 million
New Positions: Yes, see below
Why We Like It:
KKD likes to move on its earnings reports. In late May the stock soared on a better than expected earnings announcement and management raising guidance. Fast forward to late August and the stock collapses with an earnings miss. Investors were worried about a contraction in margins. Since the Q2 earnings sell-off KKD has found support. Now after a month of consolidating shares look ready to rise again.
There is some short-term resistance in the $20.00-20.20 zone. That's why I am suggesting a trigger to buy KKD at $20.30. More conservative investors may want to wait for a rally above its simple 50-dma currently at $20.57 as an alternative entry point. If we are triggered at $20.30 our target is $23.25.
NOTE: KKD is prone to some intraday spikes. I am suggesting small positions to limit our risk.
Trigger @ 20.30 *small positions*
Suggested Position: buy KKD stock @ (trigger)