Wendy's International, Inc.(WEN). The Group's principal activities are to operate, develop and franchise quick-service and fast-casual restaurants.
When I turned on my market filters and explorers and started to analyze hundreds of charts I knew I had to buy at least one food related stock. That's because I got a lot of stocks of this group making or attempting to make new highs with heavy volume backing those moves.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=25;image)
I've chosen WEN because its volume has been so high over the past few sessions:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=26;image)
But there's something making me scratch my head ... with this volume so high, shouldn't the stock price be higher by now? And what about that line connecting the last 3 highs?
Well, I have some doubts about this stock ... this kind of activity showed by volume must produce higher prices in the short term, or something's wrong. We'll give it a week.
Trading Plan:
1) Buy WEN at the open
2) If after this week WEN still trades below the blue trendline of the second chart, dump it.
3) If volume finally produces serious price increases (as I believe will happen), keep monitoring market action to know when to sell with a profit
David Randolph
www.3stocksonfire.org (http://www.3stocksonfire.org)
«When you can't remember why you bought, you should already have sold»
WEN is a mamoth stock. It doesn't move, at least not as I want to. If I wanted a bond I would have bought one.
Well, made a 1.8% profit, making my money free to ride faster horses (I hope).
Tim Hortons, the much anticipated stock is going to IPO tomorrow. And WEN owns it. WEN is only giving out 15% in the IPO, meaning they still own 85% of Tim Hortons stocks after the IPO. They expect to get around 800M for the 15% at the IPO.
Looking at WEN's market cap, one can tell that much of it comes from Tim Hortons shares. If Tim Hortons explodes, WEN should follow since their 85% of Tim Hortons stocks appreciated and is significant to their market cap.
Waiting for tomorrow's IPO ;D