Nick Perry (Schaeffer's Investment Research) submits: Landry's Restaurants (LNY) spent most of 2004 and 2005 bouncing in a range between 26 and 33. The last touch of the lower boundary in December saw the stock bounce straight to the top of the range and breakout. This leaves the stock in a short-term overbought condition, but that former resistance should now serve as support:
In terms of the sentiment, I see two points that stick out. The first is that short interest is relatively heavy at near 30-percent of float. The other aspect is that the Street isn't overly enthusiastic. According to Zacks, only 6 analysts even track the stock, and only three of those give it a "buy" rating. This leaves room for upgrades and potential new coverage.
Update: Reader Dave says
Nick, you failed to bring up the volume on the LNY breakout, which was low. The stock's up 30% YTD. Will seafood places get a boost if bird flu takes a bite out of the number of available chickens? I've noticed Sanderson and Tyson taking it hard. Forget gasoline, I want some Catfish futures.
My response - I don't follow volume too closely, but I know that many do, so thanks for adding that to the mix. As far as catfish futures, you can have them, I am sticking with sugar as the next currency...