CKE Restaurants (CKR)

Company

CKR 1-year chart CKR 1-year chart

"CKE Restaurants, Inc., 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 chart

Buy

Since I bought a half-lot of CKR last month, the stock has been beaten down severely, down about 30% from recent highs. I think the bleeding has mostly stopped and CKR is either recovering or, at least, starting another upcycle.

  • Price momentum (PPO) — rising for last two weeks
  • Relative strength (RSI) — back up to neutral
  • Trend (ADX) — still very strong, but selling pressure (-DI), while still above buying pressure (+DI), is ebbing somewhat
  • Volume — picking up sharply

Based on technical analysis, MarketEdge describes CKR's chart as an "avoid" in a "strong downtrend." Maybe, maybe not. I prefer to think the bubble popped and a healthy correction has occurred.

Sell

gain Bottom line
-32%

Well, this didn't work. After hanging on far too long, I finally decided to close this positiion and take the loss. The Santa Claus rally did not carry over into the new year as it usually does, and there are very dark clouds on the economic horizon.