Leo Fasciocco specializes in "breakout" stocks. In Ticker Tape Digest, he eyes two food & drink plays: Buffalo Wild Wings (NASDAQ: BWLD) and Hansen Natural (NASDAQ: HANS).
"Buffalo Wild Wings operates a chain of casual dining restaurant that specializes in serving chicken wings spun in one of the firm's 14 original sauces, alcohol, and sports.
"The company owns, operates and franchises nearly 560 restaurants in 38 states and has annual revenues of $420 million.
The stock has moved up and out from a six-week flat base. The stock is near a 52-week high, which is bullish.
"BWLD came public at 10 in late 2003. The stock peaked at 47 in 2007. Since then it has an up an down pattern. Right now it is in the 'up phase'.
"Its momentum indicator is solidly bullish and the accumulation - distribution line is in a solid up trend. The pattern of buying is supportive of a move higher.
"We are targeting the stock for a move to 50 and suggest scaling in to positions. A protective stop can be placed near 39.
"Hansen Natural produces soft drinks, including natural sodas, fruit juice, and energy drinks. Its key product is the Monster Energy drink, the second-largest energy drink in the U.S. behind Red Bull. Annual revenues are $1 billion.
"Technically, the stock has broken out from a seven-week flat base today and makes a 52-week high. One of the largest trades was a block of 50,000 shares that crossed at $38.10.
"HANS' long-term chart shows the stock in a powerful bull market soaring from 5 in 2004 to a peak of 68 in 2007. The stock dropped with the bear market. However, it is now in a nice up trend.
"The stock's momentum indicator is solidly bullish and the accumulation - distribution line is in a strong up trend. It even broke out to the upside well before the price of the stock. So, it is showing outstanding buying in the stock. That is good confirmation of the breakout.
"HANS' breakout looks very good and we are targeting the stock for a move to 47 within the next few months, or sooner. A protective stop can be placed near 36."
