How Famous Dave’s of America, Inc. (DAVE) Stacks Up Against Its Peers

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Famous Dave’s of America, Inc. (NASDAQ:DAVE) but similarly valued. These stocks are The Bon-Ton Stores, Inc. (NASDAQ:BONT), Orion Energy Systems, Inc. (NYSEAMEX:OESX), Streamline Health Solutions Inc. (NASDAQ:STRM), and Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE). This group of stocks’ market values match DAVE’s market value.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was $19 million in DAVE’s case. Streamline Health Solutions Inc. (NASDAQ:STRM) is the most popular stock in this table. On the other hand The Bon-Ton Stores, Inc. (NASDAQ:BONT) is the least popular one with only 3 bullish hedge fund positions. Famous Dave’s of America, Inc. (NASDAQ:DAVE) is tied as the most popular stock in this group and has more money invested in it that any of them. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DAVE might be a good candidate to consider taking a long position in.

Disclosure: None