PZZA looks poised to $30-35 area PE of 41 vrs S&P's 22 Below from Casey's Reasearch............(no affiliation btw) Yesterday, Bloomberg Business noted that investors are betting against Papa John’s stock. The number of shares being shorted -- a bet that the stock will fall -- has risen to 5 percent of those outstanding, near the highest level in six years, according to data compiled by Bloomberg and Markit Ltd. The investors are wagering that Papa John’s will have a tough time sustaining its lofty price-to-earnings ratio... E.B. Tucker agrees that Papa John’s stock is way too expensive. I’ve been baffled by Papa John’s for a long time. The stock price trades at 27 times free cash flow. That’s a tremendous premium for a fast food company. That’s what investors pay to own companies that produce groundbreaking cancer drugs or some other life-changing technology. It’s not the price you should pay to own a pizza chain best known for its garlic butter dipping sauce.
There will be a short term uptrend from here. Don't let it run too long and give back profits. Ultimately this will be a sell in the existing long term downtrend.