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I was taking a cruise through the snack food universe (through the charts, not the grocery store aisles), and I found this pretty chart that I wanted to share with you of J&J Snack Foods Corp (NASDAQ:JJSF) (click all images to make larger).

There is much to like about this name both fundamentally and technically (but see longer term chart below).

Technically:

  • Beautiful inverse head and shoulders pattern
  • clean breakout at neckline on good 2.33 x relative volume
  • clearing of volume@price overhang bars
  • caution warranted to wait for a pull back on the overextended price

Fundamentally (check them out on FINVIZ):

  • They have a quarterly cash dividend of .1175 up from .1075 (though I don't screen for that)
  • Recently beat on earnings
  • Great balance sheet (cash, good current ratio, no l-t debt)

I also like to take a step back and look at longer term charts. Let's look at a monthly chart:

Lots of happy holders in this name! However, the chart is approaching all time highs; accordingly it would be wise to look at valuations in addition to earnings growth as part of your due diligence to see if it fits with your investment theme.

Disclosure: Watch list!

Source: There's Much to Like in J&J Snack Foods