Last week, I pointed out that there had been extensive changes in the highest management of Panera Bread (PNRA) and that it was a good time to take profits on the stock and certainly not to buy. Since then, the stock is down about $9.50 to $147.40 as I write this. For anyone who shorted the stock or bought puts after reading my post, I am now writing to suggest that it is time to close that position. Panera will announce its earnings tomorrow. I strongly suggest that you do not go into that announcement short the stock.
Over the years, Panera has had the uncanny ability to surprise on the upside in a major way just when folks were starting to expect bad news. Tomorrow's reports may be another of these instances. Remember, aside from the executive departures which were troubling, there is nothing out there which indicates a bad report. If you are short, close the position and take the profit.
DISCLOSURE: I have no interest in Panera and no intent to start one in the next 72 hours.
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