The retailers will release their November same-store sales figures tomorrow morning. I suspect these could be better than expected. In addition to tonight's new candidate there were several stocks that caught my eye as potential bullish plays, although a few of these might need to see a dip first before I would consider positions. On my watch list are: AXP, WY, WMS, SLE, LOW, MS, PDCO, and SNDK.
NEW BULLISH Plays
Peir 1 Imports - PIR - close: 10.14 change: +0.38
Stop Loss: 9.15
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: Yes
Pier 1 Imports, Inc. is the original global importer of imported decorative home furnishings and gifts.
(source: company press release or website)
Why We Like It:
Retail stocks have been gaining ground as investors bet on a comeback for the consumer. Tomorrow several of the major retailers will release their November same-store sales figures. I suspect these results will be positive and could fuel another leg higher for the retailers. PIR has already rallied to new five-year highs and looks poised to breakout past its November peak.
I am suggesting bullish positions now at current levels. We'll use a stop loss at $9.15. Our first target is $11.90. Our second, much longer-term target is $12.95.
Investors should know that PIR is due to report earnings on December 16th. We plan to hold over that event. I consider holding over the earnings announcement a high-risk event. Keep that in mind as you plan your trades.
Suggested Position: buy PIR stock at current levels.
Entry on December 2 at $xx.xx
Earnings Date 12/16/10 (confirmed)
Average Daily Volume: 2.3 million
Listed on December 1st, 2010