Small Cap Casual Dining for…the Win?

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While the likes of CMG MCD PNRA SBUX and YUM are merely trying to base out or stabilize after the recent sharp correction, a surprising number of small-cap casual dining stocks are either breaking out to new highs with strong buying volume, or are seeing very intriguing signs of accumulation. Have a look at the weekly charts below. The outperformance is breathtaking, consider the 11% broad market correction we just saw. Be careful with market orders on some of these, as they tend to trade thinly. Again, we are talking the baby caps here.

My best guess is that we might be in store for a series of mergers, acquisitions, and leveraged buyouts in the space. Either that, or there really is a flight to U.S. markets away from the rest of the world, since the stocks below are much more levered to America than international powerhouses like MCD and YUM.

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Previous Posts by chessNwine

Small Cap Casual Dining for…the Win?

453 views

While the likes of CMG MCD PNRA SBUX and YUM are merely trying to base out or stabilize after the recent sharp correction, a surprising number of small-cap casual dining stocks are either breaking out to new highs with strong buying volume, or are seeing very intriguing signs of accumulation. Have a look at the weekly charts below. The outperformance is breathtaking, consider the 11% broad market correction we just saw. Be careful with market orders on some of these, as they tend to trade thinly. Again, we are talking the baby caps here.

My best guess is that we might be in store for a series of mergers, acquisitions, and leveraged buyouts in the space. Either that, or there really is a flight to U.S. markets away from the rest of the world, since the stocks below are much more levered to America than international powerhouses like MCD and YUM.

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______________________________

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______________________________

 

Comments are closed.