Today's Trending Stocks
Click a Company to Research Now:
- Bank of America (BAC)
- Apple . (AAPL)
- Facebook (FB)
- AT&T (T)
- Nokia (NOK)
- Delcath Systems (DCTH)
- Mentor Graphics Corp (MENT)
- Complete Genomics (GNOM)
Fast Food Restaurant Sonic Corp. (SONC) reported Q1 earnings of $0.10 / share Tuesday after the close, falling short of analyst estimates of $0.13 / share. Revenues fell 25.9% year over year due largely to unemployment and an intense promotional environment. Profits were down 13%.
Guidance did nothing to help burger joint’s shares, as management forecast that earnings would not grow at all in 2010.
Shares were hit hard on all of this bad news, plunging 8.88% after hours following a 0.39% daily decline. If the stock opens tomorrow where it is now, it will be right atop the upper support line delineated below. As you can see, shares have bounced off of this level several times in the past few months. If it breaks through, there won’t be anything there to buoy shares until it reaches the area of the lower support line, situated at $8.48. If it breaks through there, well, goodnight nurse.
You’d be prudent to avoid this stock for a while, unless of course you’re looking to short it if it breaks $9.30.
Disclosure: No positions in SONC.
Readers who liked this also enjoyed these posts:
The Edge: 7 Interesting Comments About Markets in 2010
Interview with Financial Blogger and Portfolio Manager Nick Gogerty
Get Your FREE Special Report: 4 Things You Must Know About the US Economy Now!
Do You Want More Profits? Wall St. Cheat Sheet Premium newsletter subscribers have been crushing the markets with winning stock picks.
Click here now for your FREE trial to our acclaimed flagship newsletter:
