Exponential Volume Alert in California Pizza Kitchen (CPKI)

Posted in General 
July 28th, 2010

California Pizza Kitchen Inc. (NASDAQ: CPKI) has traded nearly 3-times normal volume today and it is not even NOON EST yet.  Reports are out that it is close to a deal to be acquired by a private equity firm, although this remains a rumor at this point.  The pizza and food chain has been on the market for a while, but the stock is up 9.3% at $18.34 on over 966,000 shares at 11:54 PM EST.

The 52-week range is $12.29 to $22.92 and the average volume here was only about 320,000 shares.

Something may be brewing, and the $447 million market cap today against Thomson Reuters revenue estimates of $641.36 million for 2010 and $675.28 million for 2011 would certainly not put the firm out of the scope of private equity even when credit is harder to come by.

JON C. OGG

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