Wednesday Evening

Coyote Pup

CSCO is getting hit after hours... down about 4%. We have an unusual setup when you look at the daily chart of the S&P futures. 2 days in a row prices were rejected under 1346-1347 (1350 SPX). The bears are working on it again here and it looks like tonight is going to be another volatile session. The picture above was taken in Colorado a few years ago... that little dude froze at the same time I did... lol.

Wednesday Afternoon

After a dip below the lows of yesterday in S&P futures, the bulls are pushing back and are trying to take it green on the day. There was a big volume push in S&P futures up to 1354 just now and it looks like some mild consolidation so far. Intraday volume is already close to 1.5m contract (pretty high)... which would put a high target area of 1360-1365.

Wednesday Morning Thread

Gator's Chart of the Day: CBRL

Cracker Barrel isn't a fast mover but there is an insider who really likes it.  Sardar Biglari (Chairman and CEO) has been buying regularly and frequently.  Beginning January 5th he has filed 33 separate Form 4's with the SEC representing 1,618,278 shares purchased.  His average buy is just over 49,000 shares.  He's been buying every month this year.  He now owns 3,803,165 shares having made his latest purchase on May 8th.  On May 2nd CBRL reached its all-time closing high of 58.74.

Earnings have been growing well over 11%/yr for the last 5 years yet the forward P/E is a reasonable 12.2 and 9.6% of the float is short.  That works out to 8 days trading to cover the short interest.  The company does have debt and almost all is long term.  The debt/equity ratio is 1.72 but they have consistently paid a dividend (currently yielding 2.79%) and the long term debt has been coming down steadily over the last 3 years from 779M to the current level of 540M.

If you want a steady grower (up 14%+ so far this year) with management on your side this looks like a good one.