At Financial Tides we're a sucker of good Bar-B-Que and DAVE not only serves up a good brisket but is projected to serve up nice earnings growth. DAVE owns, operates and franchises barbecue restaurants and blues clubs. The company currently owns locations and franchises locations in Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Utah, Maryland and Virginia and has signed development agreements for an additional franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Only one analyst, Mark Smith of Feltl & Co follows DAVE but with projected sales of 137M it has a lot of other fans. Mark rates the company a STRONG BUY with earnings growth of 24.5% this year and 14.8% next year.
BarChart rates DAVE an 80% BUY on a technical analysis basis. The company is selling for around 6.70 and Barchart has a support level of 6.46.
Recommendation: BUY Famous Dave's --DAVE-- below 6.75 with a protective stop loss at 6.00
Jim Van Meerten is an investor and writes about financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com.
Disclosure: I hold no position in Famous Dave's -- DAVE -- at the time of this publication.
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