A Slam Dunk Setup?

Published on
6 December, 2018
Topic
Equities
Duration
9 minutes
Asset class
Equities

A Slam Dunk Setup?

Featuring Louis Llanes

Louis Llanes, CMT, founder of Wealthnet Investments, highlights the iconic quick-service-restaurant company Dunkin’ Brands, and explains why he sees huge upside potential in the coming year. He discusses the company’s fundamentals, examines the technicals and reviews how to make the trade. Filmed on December 4, 2018 in Englewood, Colorado.

Published on
6 December, 2018
Topic
Equities
Duration
9 minutes
Asset class
Equities
Rating
12
Sharing

Comments

  • MP

    Matthew P.

    10 12 2018 07:52

    1       0

    Thx for the coverage and analysis louis! Always enjoy your commentary

  • JM

    Jeff M.

    8 12 2018 00:18

    0       0

    Perhaps this is a dumb question, but is the RSI you reference different than the RSI 14? I believe RSI 14 is a momentum indicator that just compares current momentum to past momentum (not comparing to SP500). If I understood the one you reference compares DNKN momentum to SP500 momentum).

  • mg

    matt g.

    7 12 2018 20:34

    2       0

    Hi Louis,

    Great presentation. I think dunks is going to be okay for awhile. But i think they are going to erode. I live in the Northeast. There are Dunkin Donuts everywhere. Literally everywhere. Adam Sandler did a skit about a guy getting directions in Boston and every turn was proceeded by "at the Dunkin Donuts." Northeast brands don't really translate well to other parts of the country or internationally, could be an impediment especially when the fees to the francishee are so high. When I've had the brand internationally, it was made more like a European coffee. Even when I have it here, it's never really consistent. They only brew one pot of coffee and then will just add flavor shots to add to your order, which can be kind of hit or miss. I would never turn it down, but to get my coffee I drive by two Dunks to go to a regional chain. Huge brand, and brand name, especially with New England sports. But i think the brand is starting to erode in its stronghold, to a regional coffee brand and the other big names. Starbucks is the brand for life-style coffee. McDonald's is low cost provider, as well as grab and go. JAB is a dark horse just gobbling up scale in breakfast. Started with Sara Lee, Peets, Green Mountain, Au Bon Pain, and one of the few New England brands that I think does translate other places further eroding them in Panera. Believe that you will be right for awhile, but I just don't see them spaced well in the competitive landscape and if their profit margins erode as they take on more franchisees, that could be a death kiss.

  • KF

    Ken F.

    7 12 2018 13:43

    0       1

    It better grow at 52.84X P/FCF ? https://finviz.com/quote.ashx?t=dnkn

  • JW

    Joel W.

    7 12 2018 05:46

    1       0

    I won't make this trade for myself, but I really appreciate the cogent and concise presentation. Thank you very much Louis.

  • LQ

    Leslie Q.

    7 12 2018 05:42

    0       0

    Thank you Louis, well thought out trade setup from the fundamental and technical standpoint. Will be monitoring this stock as well, cheers

  • RD

    R D.

    7 12 2018 01:15

    1       0

    Good mix of fundamental and technical analysis.

  • SS

    Steve S.

    6 12 2018 16:17

    2       0

    Is it wise to go Long restaurants when a recession is looming?

    Might consider shorting this.

  • MM

    Mike M.

    6 12 2018 13:03

    5       0

    Added to watch list. Well thought out plan in mapping the trade.

  • CM

    Carlos M.

    6 12 2018 09:27

    2       2

    stop loss : below $100? stock is trading below $100 - typo on your last slide

    not sure about the rest of the viewers but I would rather have someone commenting on S&P and key levels to watch or shorting /buying puts on something like GM , this kind of vol might take everything out so for sure not buying anything until I see them stabilizing