Stock Chart

JACK - Jack In The Box

06/26/2010 08:12 PM by cnairn

Much like my short idea on BKC, JACK has a similar triangle which it also broke down from. Last month, JACK reported revenues of -8.4% for the qtr compared to the qtr the year before. This stock has a similar valuation to BKC and no dividend. I bit of a rise to around 21.50 would get us up to the downward trendline which would provide a low risk entry area. It is my opinion that the food quality has really diminished at this chain too. I do love their tacos but they will have to sell a whole lot of those at 2 for .99 to get the revenues up. They do have very clever advertising but it apparently isn't enough during this recession to help. Perhaps they should spend a little less on their ads since it is not working.

Rating:
5

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