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Reopening Play Down 29% This Week on No News

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Looking for a reopening play stock?

There’s a reopening stock I’ve been watching lately that’s down 29% this week on no news: Famous Dave’s BBQ (ticker: BBQ). The stock has been on my reopening watchlist as sit-down restaurants start to see the return of customers who weren’t able to dine in over the last year because of the pandemic.

BBQ 10-day chart

BBQ is reasonably priced at .93x sales, and should see a surge in revenue as the reopening across the US continues. The BBQ chain has a market cap of $98 million and 198 locations, meaning the company is currently trading a hair under $500k per location.

It’s hard to say exactly why BBQ has sold off so drastically the past three days. It could be that the rally is over; BBQ is up about 100% over the last few months. I would definitely avoid this kind of set-up typically, but I am bullish on reopening stocks going into Q3, so I think it’s likely that Famous Dave’s finds more success over the next few months as investors pile into reopening plays and great Q2 numbers are released later this summer.

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