This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
“Are you looking for donuts?”
That’s the question my wife will ask me whenever I enter a bakery.
There’s no doubt that I have a sweet tooth, therefore, donuts are my favorite.
This brings me to the stock that we are going to explore – Flowers Foods.
Brief History of Flowers Foods
Started in 1919 by 2 brothers, Flowers Foods enjoyed great sales right from the start. They sold 500 loaves of bread on their very first day of business!
Expansion plans have always been in the mind of the company. They soon acquired a bakery before franchising one of the brands.
50 years later, Flowers Foods was listed.
Expansion continued and the company ventured into the canned food, frozen vegetables, cakes, and cookies segment.
The history of Flowers Foods sounds rosy. Is its financials as rosy?
Business Model and Financials
From the image above, you can see that its total revenue has been on the rise, from $3.9b in 2016 to $4.8b in 2022.
This is great news.
What about its net income?
Its net income was flat from 2016 to 2020 before growing 35% and 10% in 2021 and 2022 respectively.
Flowers Foods supplies its food products to supermarkets, food wholesalers, convenience stores, vending companies, and more. This is a sustainable and predictable business model.
Technical Analysis on Flowers Food (NYSE: FLO)
Shall we have a look at the chart of Flowers Foods?
Just by looking at this chart without the need to plot anything else, you’ll be able to tell if this stock is ripe for a position trade.
There’s no need to draw anything such as support and resistance areas or read chart patterns?
All that you need are already present on the chart – the arrow and Trend Impulse Factor indicators.
Do you see a green arrow under the latest candle of Flowers Foods?
The green arrow signals that this is potentially the start of a new uptrend. You’ll want to buy when the uptrend is newly formed so that you can ride the trend early to make more money.
Next, you’ll want to refer to the Trend Impulse Factor indicator.
More specifically, you’ll want to pay attention to the colour of its bar. If it’s dark green in colour, that suggests sustained momentum. And that’s what you want to ride the trend.
In this instance, its bar isn’t dark green in colour. So, I won’t buy shares of Flowers Foods for a position trade yet.
Flowers Foods is a century-old company which began humbly.
With the high-quality bread it produces, it attracted many customers, allowing it to grow fast and eventually get listed.
Its huge customer base is reflected in its growing total revenue and net income.
But when it comes to analyzing its chart, there’s no strong reason for an entry yet due to the bar of its Trend Impulse Indicator not being dark green in color.
The green arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is a cut above its peers. You won’t have to feel in the dark and make wild guesses.
If you’re struggling to make money from the market, just do this ONE thing in 2023:
If you’re like most people, you probably think that building a profitable side income stream from the stock market is something that is extremely difficult to achieve, and time-consuming as well.
And you probably know that one friend or relative who has lost a lot of hard-earned money to the market despite being ‘experienced’.
And especially since 2022 was a time when we saw many people in the red, bag-holding 20-80% losses…
It’s understandable to see why most people have such a grudge towards the idea of profiting from the market.
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Stocks that have very bad set-ups, price movement, and in general just a low probability of moving in the direction you wish for.
In fact, this process of picking the right stocks is a crucial step that most people don’t even think about.
Ask yourself this, what is your current process for knowing what stocks to buy?
Companies that you like such as TSLA, META, AAPL etc..?
Stocks that your friends tell you to buy?
Stocks that you read about in financial news, blogs or Youtube videos?
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That’s how exactly I was able to still execute 20-40% and higher trades last year when the entire market was down.
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