YUM! Brands ready to turn over?

M

mastacoli71

Daily chart looks to have broken down out of a major trend channel established late part of 2011. They are trading at a pretty strong valuation relative to their peers and most of their growth is dependent on China which is slowing.

Any thoughts?
 
I've made some good money swinging on that trend. The trend is temporarily broken.
Most trends are breaking down. Yum sales should continue to grow. Opening 1000 new stores this year. Be careful shorting.
 
Quote from luckyluciano:

I've made some good money swinging on that trend. The trend is temporarily broken.
Most trends are breaking down. Yum sales should continue to grow. Opening 1000 new stores this year. Be careful shorting.
More...

sure but what happens if they miss numbers on weaker then expected sales in Asia where a majority of their sales come from. do you not think it will knock their valuation down more in line with MCD. MCD is has a proven track record. YUM is a growth story.
 
Quote from luckyluciano:

wallstreet loves YUM. Projecting what the news will be, or how the stock will react to news is a gamble.
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Not projecting anything just stating what i am seeing in the chart. Wallstreet also falls out of love with stocks just as quickly as the fall in love with them. I personally would not be buying until the chart shows this is a false breakdown. So far no sign of that.

Next support looks to be right where it bounced around noon today.

Fundamentally based on 2012 EPS, a more reasonable multiple of 19.87 (which is still 2 above MCD) would give a price target of 66 which so happens to be next level of support below what we hit today.
 
Quote from luckyluciano:

I've made some good money swinging on that trend. The trend is temporarily broken.
Most trends are breaking down. Yum sales should continue to grow. Opening 1000 new stores this year. Be careful shorting.
More...

Btw you sound like a typical long term bag holder.
 
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