Tuesday, May 5, 2015

Don't Make These Stock Moves Into A Bad Habit


Summary

  • Habit Restaurants reported strong Q1'15 earnings.
  • The company surged to nearly $40 after the release of the turnaround plan by McDonald's.
  • Investors shouldn't chase the stock as the PS multiple gets stretched.
   After a solid Q1 earnings report, Habit Restaurants (NASDAQ:HABT) bounced around until it soared 12.5% on Monday. The premium hamburger joint presumably surged due to the McDonald's (NYSE:MCD) turnaround plan falling short of expectations, but one has to wonder if it really justifies a surge in the stock price.

 Read the full article on Seeking Alpha.


 Disclosure: No positions mentioned. Please read the disclaimer page for more details.

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