Quote from TheCaracal:
As an example, the Atkins craze has been a good example of profiting off trends in US eating habits... check the charts.
Longs: TSN, JBSS
Shorts: KKD, PNRA, and PLB
Good luck.
David
If you honestly believe that KKD sales are hurt by Atkins, then you need to think a little more. That is pure nonsense and a bullshit excuse by KKD spin team and CNBC.
Atkins has been around for 30 years and in that 30 years we have seen donut, sweet & bakery goods grow strongly. Atkins only seriously has an effect on consumption of meat products and Atkins brands. The more recent Atkins craze actually started 2 years ago after the New York Times article. So to say that the effect on KKD is only recent makes little sense.
KKD was simply overvalued and hyped up beyond belief. Their sales hit a plateau. Look at Dunkin Donuts who has seen little effect from the Atkins craze. Look at sugar prices, they are rising.
JBSS? They make nut snacks. That's Atkins. The stock got demolished from Jan, more than the bakeries you mentioned to short. Long that stock? Definitely not due to the reasons you mentioned, I actually think this stock is way oversold for other reasons.
I see your point, but when you post examples like this, I see little chance of making any money with such bs fundamentals.
