Shark Bites: Finding a Tasty Food Stock While Waiting for a Breakout

 | Sep 07, 2016 | 2:11 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

stkl

It is a good thing we have this Apple event today or the folks on television would be talking about burritos all day.

It is very slow going out there. There is still a positive tone but a decent amount of stocks moving and over 600 new 12-month highs, but it still feels like many folks are waiting for the European Central Bank decision tomorrow morning.

The indices are still smack dab in the middle of a trading range with everyone not so patiently looking for a breakout. It is rather obvious that this very long trading range is a setup for a big move at some point, but I believe it is likely that the market is going to be jerked around quite a bit before a clear trend emerges.

I don't believe it is at all necessary to try to determine in advance which way the market breaks. There will be plenty of time to reposition as things develop and it actually may be a good trading environment when volatility picks up.

One new buy I added today from my morning watch list is SunOpta (STKL) , which manufactures organic and specialty foods. The company has had good revenue growth recently of around 25% and is expected to double its EPS in 2017 from 21 cents in 2016.

The chart is a good example of a cup-and-handle pattern. The logic of this pattern is that the weak holders are washed out during the cup phase and then the handle phase sets the stage for the eventual breakout.

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.