CKE Restaurants (CKR)

Company

"CKE Restaurants, Inc. (CKE), through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl’s Jr.®, Hardee’s®, La Salsa Fresh Mexican Grill® and Green Burrito® restaurant brands. The CKE system includes more than 3,200 locations in 43 states and in 13 countries." (company website)

CKR 6-month chart
CKR 6-month view

Buy

I tried to get in on CKR last year, but I jumped in while it was pulling back from a new high at $19.75. CKR eventually retraced almost 38% of its gain. Quelle surprise! Fibonacci rules! This time, the uptrend seems solidly in place.

CKR 1-year chart CKR 1-year view
  • Price momentum (PPO) — picking up again after the pullback
  • Trend (ADX) — very strong and strengthening
  • Money flow (CMF) — increasing inflow
  • Relative strength (RSI) — strengthening but not overbought
  • Volume — steady at around 700K shares/day

Based on technical analysis, MarketEdge calls CKR a "buy" in a "strong upward trend."

I tried to buy 500 shares, as usual, but I got out-bid after getting only 300.

Sell

gain Bottom line
3%

CKR set another 52-week high yesterday, but closed lower than the open; it opened further down today. I decided to sell this first lot, since it was the most expensive. It still leaves me with two lots totally 450 shares (27Feb07, 2Mar07) with nice unrealized gains. I can hold them a bit longer and still turn a tidy profit.