Long Position on CHUY @ $33.40 on 4/8/2013 (Momentum)

Chuy’s Holdings, Inc. (CHUY) is a full-service restaurant concept offering a distinct menu of authentic, freshly-prepared Mexican and Tex Mex inspired food.

The Company offers menu during lunch and dinner, which includes enchiladas, fajitas, tacos, burritos, combination platters and daily specials, complemented by a range of appetizers, soups and salads. Each of its restaurants also offers a range of authentic, flavorful, homemade sauces, including the signature Hatch green chile and creamy jalapeno sauces. It also offers a full-service bar in all of its restaurants providing its guests a range of value-oriented beverage offerings.The Company features a selection of specialty cocktails, including its signature on-the-rocks margaritas made with fresh, hand-squeezed lime juice and the Texas Martini, a made-to-order, hand-shaken cocktail served with special jalapeno-stuffed olives. As of January 11, 2013, the Company opened 31 new restaurants.

The company became a public company last July and since then shares have outperformed the market. Shares have formed a bullish "cup & handle" and higher prices are expected for this stock. Note that the company guided higher this morning and announced sale of 3 million shares. The shares offering should push stock price lower. We will use the sell off to establish a positon.

52-Week Trading Range:  $14.33 - $34.34

Entry Point:  $33.40

Stop Loss:  $31.70

Target Price:   $36.75

Updates

4/17/2013 10:03:40 AM

CHUY dropped below our stop loss. The position was closed at $32.

Position closed on 4/17/2013 at price of $32.00 with a -4.19% loss in 9 days.

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