Think light guidance is a problem? Not for Dave & Busters (PLAY). (March 30, 2017)PLAY
Lets look at Dave & Buster’s ( NASDAQ:PLAY ) here. Sports bars, beer, all that stuff, probably really bad food too. They reported earnings on the 28th and they guided a little bit lighter, right? They guided not as good as folks thought, but they beat their numbers.
So what happens to the stock? The stock ultimately drifts down, but then today the stock started moving higher again. We don’t get to go back two days and apply the news then to today’s price. In other words, looking at this stock now, on March 30th, that lower guidance is already factored into the price of the stock and the stock is still in demand. It is up almost to where it was pre-earnings. This is a stock that is in an uptrend. It has come out of a bit of a volatility squeeze; it is a little kind of choppy, but a really, really nice volatility squeeze, pushing out to the upside. This is strictly just a technical play.
From a fundamental standpoint, and an IPO standpoint, you can’t really say this is the enthusiasm high as I like to talk about, but it was the intermediate high, and then ultimately the stock breaks out. Now it has broken out here again at 50.00. This is still a stock I think you hang onto quite a bit. I don’t know about you but I feel like going and watching the NCAA Finals at Dave & Buster’s ( NASDAQ:PLAY ), but instead I will probably just buy the stock.