Extend Alert: Bojangles (BOJA)

By Jim Pearce • October 5, 2017

TRADE INSTRUCTIONS
Date: October 5, 2017
Name: Bojangles
Symbol: BOJA
Type: Extend
Extension Period: 1 month

TRADE RATIONALE
Our original two-month holding period for BOJA expires this week, but I am extending it for another month to include its next quarterly earnings release scheduled for November 1.

Normal trading activity in BOJA was disrupted by hurricanes Harvey and Irma, so I’d like a little more time for its improving fundamentals to get fully priced into the stock as the company aggressively opens new locations in strong markets.

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investkci

10/05/17 ‐ 12:26pm ET October 5, 2017 at 12:26pm ET

Not sure if the trade will pan out. Stores I talk to are 2 to 6% under last year in the Charlotte and North Area. Just had a $0.77 Throwback Thursdays promotion that they were selling their best sellers for $0.30 on the dollar. Huge number of transactions and customer count, but no profit.

Derek: Las Vegas, NV

10/06/17 ‐ 3:44pm ET October 6, 2017 at 3:44pm ET

Interesting, how many stores did you talk to? They have 426 locations that I know of. If foot traffic/transactions increase from last quarterly earnings/YOY, that could be enough for a nice pop as long as they don’t revise downwards.

Derek

Sravankumar Maroju

10/10/17 ‐ 10:42pm ET October 10, 2017 at 10:42pm ET

Hello , Jim

Hope you are doing good , I have a quick question about BOJA options I bought 50 calls option 15 SP NOV 17 call @ ask .26

what would you recommend? , Any chance of stock doing profits post quarter results.

Regards
Sravan

Cowboy

10/13/17 ‐ 10:21am ET October 13, 2017 at 10:21am ET

Hi Jim,
BOJA has dropped over 8% since you extended the holding period which goes against your own philosophy of holding firm on stops, holding periods, etc. The more I look into this stock, the more negative press it has gotten including a recent down grade. Another bad day today and its early.

I am a newer member (March) but this service has been pretty disappointing to say the least. I am not even referring the number of triple winners guarantee which is what we paid for–I am referring to the fact that 2017 has more transactions that were LOSERS than WINNERS (17-16)..

Am I missing something here?

Jim Pearce

10/13/17 ‐ 1:31pm ET October 13, 2017 at 1:31pm ET

Historically, the long-term ratio of winners to losers is 60/40 so this year is below average in that regard. Of course, more important is the average annualized gain on the winners versus the losers since that determines the overall return of the portfolio. In that regard, our portfolio has lived up to its historical performance of doubling the index by delivering a 44.9% average annualized gain for all trades opened and closed thus far in 2017 (through the date of the most recently closed trade on 10/3), compared to an annualized return of 19.8% in the SPY (SPDR S&P 500 ETF). We’ve had six triple-digit winners (annualized) thus far in 2017 (DHI, AEIS, RACE, CACC, IPGP, VALE), but none over the last two months. Of course, the actual experience of each individual subscriber depends on which trades they executed and at what price.

As far as I can tell BOJA has not closed beneath my stop-loss price of $11.75 since it was added to the portfolio, but if it does then I will close it out.

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