Investors have remained bullish on retailers thus far and this one has been holding up pretty well.
NEW BULLISH Plays
Abercrombie & Fitch - ANF - close: 47.06 change: +1.38
Stop Loss: 43.95
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger
At the end of October 2010, the Company operated a total of 1,106 stores. The Company operated 340 Abercrombie & Fitch stores, 201 abercrombie kids stores, 510 Hollister Co. stores and 17 Gilly Hicks stores domestically. The Company also operated seven Abercrombie & Fitch stores, four abercrombie kids stores and 27 Hollister Co. stores internationally. The Company operates e-commerce websites at www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com and www.gillyhicks.com. (source: company press release or website)
Why We Like It:
ANF used to be infamous for its Christmas catalogs. Today it looks like investors are expecting good things from ANF this Christmas. The stock has been very resilient during the market's recent pull back. Retailers were looking strong thanks to better than expected earnings from Target (TGT) this morning. Aggressive traders could buy ANF now. I am suggesting we wait for another dip to $46.00. Actually we'll set our trigger at $46.10 and a stop loss at $43.95, just under support near $44.00. Readers need to be aware that rivals BKE and AEO are due to report earnings tomorrow and their results could have a big impact on ANF. There is some short-term resistance near $47.50 and if you're willing to chase it readers could buy a breakout instead of waiting for a dip.
Trigger to buy ANF @ $46.10
Suggested Position: Buy ANF stock @ $46.10
Entry on November xx at $xx.xx
Earnings Date 02/15/11 (unconfirmed)
Average Daily Volume: 3.1 million
Listed on November 17th, 2010