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 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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