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JimVanMeerten (62.98)

Buffalo Wild Wings is in a sweet spot

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October 06, 2011 – Comments (0) | RELATED TICKERS: BWLD

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When I was a kid we used to use chicken wings in crab traps because they were so cheap.  The food fad, turned food staple really changed the prices of chicken parts.  Buffalo Wild Wings (BWLD) has come out of nowhere to really expand on this product.  Most of its competitors like Fox and Hound, Hooters, KFC and Outback are privately held so its hard to gauge it.  This year hasn't been kind to the stock even though its only off 16.89% from its one year high compared to the Value Line Index off 23.57% from its high.  The 5 year weekly price graph provided by Barchart is telling a different story:

Barchart technical indicators:

1 - 72% Barchart technical sell signal -- sell signals are weakening

2 - Trend Spotter technical hold - the hold might flip to a buy around 59

3 - Trading below its 20, 50 and 100 day moving averages16.89% off its one year high which is better than the Value Line Index which is 23.57% off its high

4 - Relative Strength Index is 44.18% and going up

5 - Barchart computes a technical support level at 55.71

6 - Recently traded at 57.25 which is below its 50 day moving average 


Summary:  Buffalo Wild Wings (BWLD) is a low priced casual restaurant that has a sweet spot catering to the sports and college age crowd.  I think this sector will recover far in advance of the rest of the industry.  The double digit projections for both sales and earning plus the wide professional and individual investor following make this stock attractive for purchase on this temporary dip.

Jim Van Meerten is a Marketocracy Master

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