A old holding of mine, Granite City Food and Brewery (GCFB) exploded 213% yesterday. This is a casual to upscale regional chain in the Midwest. I owned it a couple of years ago as their expansions seemed to be on track. To make a long story short, they got saddled with debt, kept opening new locations and can't seem to get profitable.
Chain restaurants have been posting better than expected earnings and Granite City could follow that trend. They are cutting costs and benefiting from lower commodity costs as well. I did some analysis on this last week if you care to see more detail.
Not So Fast, PF Chang's?
America's Hottest Sector: Casual Dining Restaurants. (via Fund my Mutual Fund).
About a week ago, I checked back in to find the stock at 0.18/share. I considered buying some shares with the mindset of "I could lose every penny, but there is also big upside." Needless to say, I got a bit sidetracked and didn't buy. The stock went up 213% yesterday. No news I could find. Likely just a buyer or two that bought quickly. The shorts started covering, and the stock jumped quickly. This can happen on a thinly traded cheap stock. Anyways, I'm not sure that I'll buy any shares, but I'll continue to keep an eye on them. Check out this chart.