Long Position on RRGB @ $45.00 on 4/4/2013 (Rumor)

Red Robin Gourmet Burgers (RRGB) develops, operates, and franchises casual-dining restaurants across the United States and Canada. Its restaurants offer gourmet burgers, as well as various salads, soups, appetizers, entrees, desserts, and signature Mad Mixology alcoholic and non-alcoholic specialty beverages. As of March 11, 2013, the company operated 473 Red Robin locations, including 335 company-owned Red Robin restaurants and 5 Red Robin's Burger Works locations, and 133 Red Robin restaurants operating under franchise agreements.

Shares have formed a slow moving bullish "flag" and higher prices are expected for this stock. 

We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares.

52-Week Trading Range: $27.18 - $46.94

Entry Point:  $45.00

Stop Loss:  $42.75

Target Price:  $49.50

Updates

5/3/2013 12:02:57 PM

RRGB did not accomplish our 10% upside target in 30 days. We are closing the position at $48.38 as our 30 days is expired.

Position closed on 5/3/2013 at price of $48.38 with a 7.51% gain in 29 days.

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