DRI Cup And Handle

By Johns Wu on Dec 11, 2005

I don't really scan for cup/handle patterns because I'm not really experienced with them, but DJ wrote in to point out that DRI may have formed a cup/handle.

I know you guys are chart guys — please look at darden restaurants (DRI) – look specifically at a one year daily chart. I see a deadly cup and handle formation (looks like DRI is in the "handle stage") this stock could really take off soon.

Thanks for writing in, DJ.

This entry was posted on Sunday, December 11th, 2005 at 6:58 pm and is filed under Market News. You can skip to the end and leave a response. Pinging is currently not allowed.

7 Responses to “DRI Cup And Handle”

By muckdog on December 11th, 2005 at 7:28 pm

Seems like cup and handles are the most recent TA favorite. That and point and figure charts. I don’t like either, to be honest.

I like eating at Red Lobster, though.

By THE BULL TRADER on December 11th, 2005 at 7:36 pm

i like eating at red lobster too

By a on December 12th, 2005 at 1:30 am

Could be due for a move up. Wouldn’t advise jumping the gun with the chart being deadly though. Depending on how often DJ checks up on it…watchlist or set an alert/limit order. NOT ADVICE (As far as your legal team knows) Blah, blah, blah.

On an unrelated note:

What if the Red Lobster gets loose in the Olive Garden?

-a

By DJ/catablast.com on December 12th, 2005 at 12:35 pm

A says: Could be due for a move up. Wouldn’t advise jumping the gun with the chart being deadly though.

A, I meant “deadly” in a good way — meaning you could make some “killer gains.”

Sorry, I should have been more clear.

As far as the Red Lobster getting loose in the Olive Garden, please explain what you mean.

If you mean: will red lobster eaters defect to Olive garden? — the answer is no.

That’s why we like the stock. In addition, Darden’s P/E multiple is an aberration that the market hasn’t fully investigated. Darden’s peers trade at 24 X next year EPS; DRI only trades at less than 18 X forward EPS.

Something has to give, even if its just a 5 or 6 point gain from here…..

By a on December 13th, 2005 at 3:01 am

I knew what you meant by deadly, just being sarcastic.

The sarcasm continues in the Red Lobster comment. Is defection what I meant? No. More humor, which apparently doesn’t translate. However, I wouldn’t care much because they are both owned by Darden. See links like…
http://www.business.com/directory/food_and_beverage/restaurants_and_foodservice/darden_restaurants_inc/

While I’m not taking it quite so seriously, I wish you luck with the stock. Sorry about the confusion.

-a

By DJ on December 16th, 2005 at 10:06 am

Man our call hit the nail on the head!

DRI is up 10% since we all started talking about it here at thebulltrader!

thanks, compadres!

Did ya’ll see the Freidman Billings upgrade?

By a on December 18th, 2005 at 7:46 pm

Congrats, DJ.

-a