Friday, April 24, 2009

Cheesecake Factory earnings

Cheescake Factory is one of the biggest winners on the NAZ today, hitting 18.

Goldman Sachs downgraded CAKE on April 20, and it pushed the stock down to 13 and change. It only moved 35% in their face in four days!

But I'm taking CAKE off the table today at 17.73, only because I like the numbers, and because I touted it here at 7.37 in December! The earnings were good, and I could say that CAKE slowed their expansion thus boosting earnings but that's not my reason for selling. I have an opportunity cost for money!

Lower gas prices means the consumer will still go out to eat. Cheesecake Factory (CAKE 7.37), which also owns Gran Luxe and Brinker International (EAT 8.53), which owns Chile's, Maggiano's, Romano's Macaroni Grill and On the Border are both plays, with good charts that have made a rolling bottom, that now look like they getting ready to head higher. Not a play you need to overthink. Everyone knows these stories, and yet nobody is interested. But today I saw good buying in both.
http://aaronandmoses.blogspot.com/2008/12/let-them-eat-cake.html

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