Hi {{ first name | there }},

Quick one today.

TGI Friday’s is on the ropes.

Well, the UK franchisee in Hostmore (MORE) is.

This shouldn’t come as a surprise if you’ve eaten there. Because it’s rank.

And I’m no food snob.

I’m just has happy in a Nando’s as I am in a Michelin.

But TGI Friday’s is a tired brand that needs putting down.

It’s one of the most recognised brands in the UK in terms of hospitality, but that means nothing if you can’t get people through the doors.

And there was a staggering -23% like-for-like (LFL) drop in July.

In June, the Euros and the ‘unseasonably warm weather’ were blamed, as if the sun coming out during summer is somehow a huge surprise.

OK, to be fair, it is the UK.. But this is now a solid code red.

I’ve highlighted the negatives with “borrowings set to exceed existing borrowing capacity” (not good) and “in discussions regarding additional financing” (definitely not good).

If you know that the company is looking for more funding.

And you know that it’s in a bit of a pickle, to say the least..

Why on earth would you go anywhere near this stock?

It’s for the gamblers and dreamers now.

I remember meeting with the former CEO here Cathal Friel.

He told me (this was back in 2019) exactly what he was going to do.

And then he went out and did it, and I made a few scraps on the stock.

He cleaned up, and grew the company’s market value hugely.

It was a stunning move, and I should’ve paid more attention.

But the stock is now back in a stage 2 uptrend.

Hvivo is putting in lower lows, and has marked the 30.5p level as resistance.

Revenues are growing, although the post-tax profit puts it on a PE of around 20.

Given that those profits are set to increase by 20.5%, that seems reasonable.

Cash has grown year on year to £37.1 million from £31.3 million too.

I haven’t looked deeper into this company, but with margins at the upper end of guidance for a quick check it looks like no red flags.

So it could be a nice Move 2 Move trade (a short term swing).

I want to see a tightening around 30.5p before a breakout.

This deserves a mention because of the chart.