Tim Hortons double double? or double trouble?
As parents stand inline to enrol the family in the fall / winter sports activities, one thing is always in their hand.
From Timbits soccer jerseys to timbits hockey uniforms the fall season is a Tims marketing spectacular. Thousands of kid's have come home from tim's Camps and the drive through lineups get longer and longer, as the temperature drops.
SO, on a recent scan of stocks under the 40 week, low and behold, up comes a double double. (Double cream, double sugar for the non coffee drinker!) Tim's chart shows up on the radar.
Starting at the top, Tim's RSI never reached 40 in the last 3 years. The stock price has not stayed below the 40 week for more than a few weeks. The MACD is still in positive territory and the full sto's have weakened slightly, but are still above 60.
In a world of trying to hunt for pullbacks to make some dough, Time Horton's has been making new highs for 3 years. Here is the good news. A stop is relatively tight to the current price action. A stop in the $48's would protect the downside, and a runup on Tim's stock should take out the preceding high of $58.00 if Tim's can hit it's annual high in the 4th quarter as in the past three years.
Is it from $'s to donuts...or donuts to $$$'s ?
So I'm off to sit in a Tim's drive through line up behind 40 cars waiting for an x-large black, double cupped!
Greg Schnell, CMT