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Talbots - TLB - close: 31.98 chg: +0.42 stop: 30.49

Company Description:
Talbots is a leading national specialty retailer and cataloger of women's, children's and men's classic apparel, shoes and accessories. The Company currently operates 1,051 stores throughout the U.S., Canada and the United Kingdom. Its catalog operation circulated approximately 46 million catalogs worldwide in fiscal 2004. (source: company press release)

Why We Like It:
The RLX retail index may not look so hot thanks to a breakdown in retail titan Wal-Mart (WMT) but that's not stopping shares of TLB. TLB broke through major resistance at the $30.00 level and its 200-dma in early March. Since then the stock has consolidated backwards but found new support near the $31 level. If you look at its daily chart you can see how TLB is climbing in a channel-like pattern (see chart below). Currently the stock is beginning to bounce off the bottom of this rising channel, which offers traders a great bullish entry point. There is resistance near $34 but we suspect that TLB will be able to trade higher thanks to the current bullish pattern. Our target is the $35.50-36.00 range. Our time frame is about six weeks.

Picked on March 31 at $31.98
Change since picked: + 0.00
Earnings Date 05/18/05 (unconfirmed)
Average Daily Volume: 408 thousand

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