If you enjoyed last years Mr. Markets Alternative Christmas Present and you wanted to hang up your stocking on that one. Then here's another quick suggestion for you.
The stock concerned is an old favourite of mine Restaurant Group (RTN) which I exited early last year as I felt the rating had got extended. Since then they have generally traded sideways before coming off by around 100p or nearly 14% to their current 635p or so (see chart at the end). They have been quite volatile recently, probably with the market, despite their in line trading update in November.
So why look at it now? Well like Alternative Networks, we have a news event which may act as a catalyst, in this case their post close trading update. While this may well just confirm their previous in line guidance I think there's a chance they could surprise and beat downgraded numbers given the mild weather we have had and the big cinema releases over the Christmas period. This may have encouraged more shoppers and cinema goers (where a lot of their sites are based) to dine out more, especially with the falling petrol prices and wage rises leading to rising consumer incomes.
Obviously no guarantees on that of course, but the share price doesn't seem to be factoring in anything too positive down here where it is looking over sold. While on the fundamentals for the longer term it looks better value if not an outright bargain at around 17x with a 3% yield on the coming years numbers. I also note that the Compound Income Score had risen back up to 93 as of last Friday - hmm tasty, bon appetite?