ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
According to the latest CFTC data, speculators accumulated their largest net long position on the Canadian dollar (FXC) since February, 2013. This 4-year high in bullishness sticks out so much only because speculators have spent most of these four years being very bearish on the Canadian dollar. Prior to 2013, net longs were regularly 2 … Read more
So it was true after all. Restaurant Brands (QSR) was indeed drooling over the secret recipes of Popeyes Louisiana Kitchen (PLKI). Today, PLKI soared 19.1% to $78.73/share and a $1.6B market cap, just short of the $79 ($1.8B market cap) that QSR promised to pay for acquiring PLKI. When I discussed the merits of a … Read more
Popeyes Louisiana Kitchen, Inc. (PLKI) is one expensive stock, especially for a (fried chicken) restaurant: trailing P/E of 36.2, forward P/E of 28.9, price/sales of 5.5, and price/book of 187.4. PLKI most recently reported 4.7% year-over-year revenue growth and -1.9% earnings growth. (Data from Yahoo Finance). According to briefing.com, year-over-year revenue growth has stagnated in … Read more
AT40 Status: 58.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 68.5% of stocks are trading above their respective 200DMAs VIX Status: 10.9 (volatility index) Short-term Trading Call: neutral Commentary “We’re way ahead of schedule, I believe. And we’ll be announcing something, I believe, in the next two or three … Read more
AT40 Status: 53.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 66.8% of stocks are trading above their respective 200DMAs VIX Status: 11.5 (volatility index) Short-term Trading Call: neutral Commentary As is so typical of this go-stop-stop stock market, this week started without immediate follow-through to a fresh all-time high … Read more