National $CAKE Day
In case you haven't heard, National Cheesecake Day is right around the corner. This sacred day falls on July 30th every year. While I will likely be eating a Yasso bar instead to watch my girlish figure you should all go buy some $CAKE.
Background- $CAKE posted earnings yesterday. They beat EPS and Revenue by over 2%. While that is not much, it was their 3rd quarter increasing their revenue by over 100 million (Reported approximately 650 this quarter). Moreover, their EPS increased 4x from last quarter with lingering affects of COVID still impacting the bottom line.
Recent Trends- Despite beating earnings yesterday, $CAKE fell sharply (about 12%). There were some rumblings that this was the work of institutional shorts and I'm guessing they got their bag yesterday and cleared out for National Freaking Cheesecake Day. Moreover, I have some recent stock forecasts to show you I am not completely full of shit- "The 15 analysts offering 12-month price forecasts for Cheesecake Factory Inc have a median target of 62.00, with a high estimate of 70.00 and a low estimate of 45.00. The median estimate represents a +29.84% increase from the last price of 47.75." That's pretty juicy especially considering there was a recent forecast of $70.
On $CAKE day eve last year the stock went up around 4 percent. The year before about 2 percent. With the way stocks are trending these days, what is a better alignment of the stars? A stock with historical success on and leading up to National Cheesecake Day who beat earnings and fell by 12% the previous day? I'm not sharing a stock that has been on a dominant run as of late. Look up the chart for yourselves you idiots. No brainer play here, if you want to celebrate the national holiday correctly with some true American $CAKE this is your play.
Position- 55 shares at $47.90
TLDR: National $CAKE Day is tomorrow, stock looking to rebound off 12% drop yesterday, high price targets
Submitted July 29, 2021 at 03:14PM by my-dawgggg
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