Originally Posted by ericed
what is your opinion Hershey or similar leading up to vday?
Mmmmm...I don't play stocks like that but took a look at HSY and what I see is...
1. It's a large cap stock finishing up a 9 month base. A dinosaur behemoth really that moves slowly. Valentines day is kind of a blip with a stock like this. I'd think more peeps buy flowers and for sure more chocolate moves during Halloween especially with the grade of chocolate HSY makes. How many guys give Hershey bars to their ladies? Maybe in the trailer park...lol!!!
2. Made a nice move thru $50 on volume but I wouldn't get interested in the stock until it starts working around $52. I mean $50 to $52 is a 4% gain and pretty sure it'll get to $52 but a ton of resistance at that point. Clearly defined channel though between $46 and $52.
3. Institutions don't like the stock and you can see that with it ignoring it's 200 day moving average and it's E (bottom of the barrel) Investors Business Daily rating for the group it's in. Institutions move the market/stocks and not individual investors.
4. While the leader in it's group it lags the entire market in it's Composite Rating, Earnings Per Share and Relative Strength but the stock is being accumulated though.
No I don't see much happening with this stock in the near term...then again I passed on JDSU near the close on Thursday then it popped 20% on Friday...LOL! Still I don't see much potential with HSY at this time. Honestly RMCF in that group, #2, looks better technically but very thinly traded and has some bad things going for it also fundamentally.
Take what I said with a grain of salt bro. In some ways the market has already priced in any Valentines Day move...unless there is a surprise when they announce earnings and especially if they raise guidance.
Looks like HSY is improving though. FLWS (1-800-flowers) made a nice gap move recently and consolidating the gain but at $2.75 I'd stay away and the chart in general looks like crap.
I don't see much happening with any Valentines Day move and seems the companies that would benefit from sales have already done the deed a bit.