Whilst the main market closed moderately weak, one of the few bright spots was Cracker Barrel Old Country Store (CBRL), which opened a little lower (intra low $124.88), but which settled +0.4% @ $126.53. Near term outlook offers upside to the 135/140 zone.
*Yes Brelsa, this post is entirely your fault!
The stock has had a real problem since making a marginal new historic
high in July ($156.99). Aug' saw it flash-crash to $117.06... with a
lower high of $151 in Sept'.
Since then.. broad weakness to the 126/123 zone though, and unless that
breaks, CBRL looks more vulnerable to upside.. than downside in Q1 2016.
As a company.. income/balance sheet look good (cash/debt ratio look
okay), gross/net profit margins are within industry standard... 6% net.
That sure isn't much, but then.. that's the highly competitive restaurant
see HERE for a basic overview.
Best guess...renewed upside to 135/140 zone in Q1.
It should be clear though, for sustained price action >140.. we'll need the sp'2200s.. and beyond.
Low fuel prices look set to continue across 2016, and that will no doubt help ALL retail/food outlets.
Broadly.. CBRL looks a fine company, although I can't say anything about the food, as there are no Cracker Barrels in the UK.
*I've no position, its not generally a stock/sector I follow, but as its gaining some increasing media/analyst attention, I'll likely periodically highlight it in the months ahead.