Long Position on SONC @ $31.25 on 1/13/2015 (Momentum)

Sonic Corp. (SONC) operates and franchises a chain of quick-service drive-in restaurants in the United States.

The Company operates in two segments: Company Drive-Ins and Franchise Operations. The Drive-Ins segment consists of the drive-in operations in which the Company owns a controlling ownership interest and derives its revenues from operating drive-in restaurants. The Franchise Operations segment consists of franchising activities and derives its revenues from royalties, franchise fees and lease revenues received from franchisees. 

As of August 31, 2014, it operated approximately 3,518 Sonic Drive-Ins from coast to coast in 44 states, which included 391 Company Drive-Ins and 3,127 Franchise Drive-Ins. It also leases signs and real estate. 

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

52-Week Trading Range: $16.92 - $31.59

Entry Point: $31.25

Stop Loss: $29.65

Target Price: $34.40

Updates

2/17/2015 10:57:50 AM

Closing SONC at $31.50 after its 30 days expired.

Position closed on 2/17/2015 at price of $31.50 with a 0.80% gain in 35 days.

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