Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for more than 4 years and we love doing it. Each night we detail 7 to 8 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. For those who would like to see a full copy of our Wednesday Game Plan, email me at firstname.lastname@example.org.
In our Friday 5/8 Game Plan we looked at SONC. The stock is liquid and trades very tight, hallmark bullish characteristics, with the exception of the latest earnings report which slumped 12.4% on 3/25. The trigger of 29.80 was hit on 5/12 and the rough 30 handle has acted as a magnet. It bounced off that handle again Tuesday. It is now HIGHER by 3% from the recommended entry.
Sticking with the casual diner theme we now look at SONC. SONC is higher by 11% YTD and 55% over the last one year period and sports a dividend yield of 1.2%. That being said it is currently lower by 18% from recent all time highs and we think it offers an opportunity. The damage was done by its latest earnings report which fell 12.4% on 3/25. That was its first miss in its previous 4 (could be forgiven) as the stock rose 9.7, 4 and .4% on 1/7, 10/22 and 6/24. SONC is lower 4 of the past 6 weeks but it seems to have found a floor following the 4/30 session which came very close to filling in the big January earnings gap. Look to enter on a slight pullback at 29.80.