Krispy Kreme, Lions Gate, Four Others Are Sent to the Woodshed

NEW YORK (TheStreet) -- Today I crunch the numbers on six retail-oriented stocks that had significant share price weakness after reporting their quarterly results between May 27 and June 2.

Here are the profiles -- two "crunching the numbers" tables follow.

Diamond Foods (DMND) ($28.85), down 9.8% since June 2, after being up 24% year to date. The company missed analysts' earnings-per-share estimates by 5 cents, earning 11 cents. The stock broke below its 21-day and 50-day simple moving averages at $31.28 and $31.70, respectively, which puts the focus on its 200-day SMA at $26.87.

The weekly chart is negative its five-week MMA at $30.54 and its 200-week SMA at $34.28 which provided resistance in early-April. A quarterly value level is $23.22 with weekly, semiannual and monthly risky levels at $29.79, $32.64 and $34.11, respectively.

Fred's Inc.  (FRED) ($15.58), down 5.5% since May 27, after being down 11% year to date. The company missed analysts EPS estimates by 3 cents, earning 17 cents. The stock traded as low as $14.54 on May 29, well below its 200-day SMA at $17.26.

The weekly chart is negative but oversold with its five-week MMA at $16.57 and its 200-week SMA at $14.44, which held last week. Annual value levels are $10.67 and $9.05 with a semiannual pivot at $15.49 and weekly and quarterly risky levels at $16.16 and $16.98, respectively.

Krispy Kreme (KKD) ($16.42), down 13% since May 30, after being down 2.3% year to date. The company matched analysts' EPS estimates, earning 23 cents. The stock traded as low as $15.87 on June 4, staying well below its 200-day SMA at $19.85.

The weekly chart is negative with its five-week MMA at $17.61 and its 200-day SMA at $11.16. Semiannual and annual value levels are $15.19 and $12.12, respectively, with weekly and semiannual risky levels at $18.42 and $18.87, respectively.

Lions Gate Entertainment (LGF) ($27.31), down 5.1% since May 28, after being down 9.1% year to date. The company missed analysts' EPS estimates by 5 cents, earning 34 cents. The stock set traded to a reaction low at $25.71 on May 30. It has rebounded since then, but is well below its 200-day SMA at $31.16.

The weekly chart shifts to positive given a close this week above its five-week MMA at $27.04. Monthly and annual value levels are $24.17 and $22.32, respectively, with semiannual and weekly risky level at $27.61 and $27.71, respectively.

Vera Bradley (VRA) ($23.31), down 12% since June 2, after being up 10% year to date. The company beat analysts' EPS estimates by 4 cents, earnings 17 cents, but forward guidance was weak. The stock broke below its 200-day SMA at $24.42 on June 5 to a 2014 low at $22.73.

The weekly chart is negative with its five-week MMA at $25.92. Annual and quarterly value levels are $19.48 and $17.34, respectively, with annual and weekly risky levels at $24.86 and $26.81, respectively.

Quiksilver (ZQK) ($3.90), down 34% since May 30, after being down 32% year to date. The company missed analysts' EPS estimates by 12 cents, reporting a loss of 15 cents. The stock gapped to an intraday low at $3.13 on June 3, and is well below its 200-day SMA at $7.26.

The weekly chart is negative but oversold with its five-week MMA at $5.51 with its 200-week SMA at $5.02. We don't show a value level, but weekly and semiannual risky levels are $4.93 and $7.24, respectively.

Your investment policy among these stocks depends on whether or not you are a buyer on weakness or a seller of strength. We advocate using a good-'til-cancelled limit order to buy weakness to a value level or to sell strength to a risky level.

Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: Stocks below a moving average are listed in red.

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon.

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six- to 12-month horizon.

Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell

This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.

EPS Date is the day the company reports their quarterly results.

EPS Estimate is the earnings per share estimate from Wall Street analysts.

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

>>Read More: Apple and Nintendo: A Match Made in Purgatory

>>Read More: Super Mario Gabelli of Gamco Is King of M&A as Hillshire Deal Shows

>>Read More: What Becomes of Pandora If It Doesn't Get Bought Out?

At the time of publication. the author held no positions in any of the stocks mentioned.

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

 

Richard Suttmeier is the chief market strategist at ValuEngine.com.

More from Opinion

Breaking: Bill Cosby Found Guilty on All Counts in Sexual Assault Retrial

Breaking: Bill Cosby Found Guilty on All Counts in Sexual Assault Retrial

Earnings Season Is Simply Out of Control Madness - How Are You Surviving?

Earnings Season Is Simply Out of Control Madness - How Are You Surviving?

Why Ether and Ripple -- But Not Bitcoin -- Prices Might Come Under Pressure Soon

Why Ether and Ripple -- But Not Bitcoin -- Prices Might Come Under Pressure Soon

Daily Chatter: Here's Where the Markets Stand After Tuesday's Beating

Daily Chatter: Here's Where the Markets Stand After Tuesday's Beating

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted