NEW BULLISH Plays
Bob Evans Farms - BOBE - close: 51.82 change: +1.02
Stop Loss: 49.90
Current Gain/Loss: unopened
Entry on April -- at $--.--
Listed on April 02, 2014
Time Frame: 8 to 10 weeks
Average Daily Volume = 459 thousand
New Positions: Yes, see below
Why We Like It:
BOBE is in the services sector. The company runs over 500 family restaurants in 19 states and sells sausage and home-style food items under the Bob Evans, Owens, and Country Creek brand names.
Wall Street appears to be in a forgiving mood. BOBE reported earnings in early March and the results were terrible. Management blamed high pork prices and the unusually cold winter on higher costs and less traffic. They also lowered their 2014 estimates. Shares crashed on the news (March 5th) but have since recovered.
Having set the bar low for the rest of the year BOBE better deliver as the weather warms up!
Now shares of BOBE are testing resistance near its simple 200-dma and the $52.00 level and look ready for a bullish breakout. We are suggesting a trigger to open bullish positions at $52.25. If triggered our multi-week target is $58.50.
Trigger @ $52.25
Suggested Position: buy BOBE stock @ $52.25