Make Him Proud

It has been an exceedingly rough five years for shares of Wendy's, as the fast food titan has suffered amid constant concerns that the iconic brand (thrust into the spotlight by Dave Thomas decades ago) has stayed too long at the dance. Specifically, the overall quality of the products and services seemed to be suffering, with various store closings adding insult to injury.

To be fair, even shares of mighty McDonald's have suffered of late, with the bottom 90% consumers in the K-shaped economy clearly under extreme pressure from entrenched inflation and various economic snafus. 

Still, Wendy's reached a point in June where it looked like the stock legitimately could be headed for OTC trading. 

Since then, the stock has recovered a bit and reclaimed its 200-day moving average again today on news that long-time Wendy's activist Nelson Peltz is preparing a deal. 

We normally do not focus on stocks and setups like these with Members. But occasionally in compelling circumstances it is worth a look, not unlike recent improvements in shares of AMC, for example.

In the case of WEN, you are talking about a float with approximately 34% of shares held short, thus making the stock ripe for a "biggie size" squeeze higher in the right setup, particularly in a summer doldrums type of tape where a heavily-shorted small cap stock is quietly turning around.