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All,
I've looked at a lot of charts and am going to go with Toys R Us (TOY).
TOY operates 1,520 stores; 706 toy stores in the United States, 442
international toy stores, including franchise stores, 207 Kids "R" Us
children's clothing stores, 121 Babies "R" Us stores and 44 Imaginarium
stores. The company also sells merchandise through its Internet site at
http://www.toysrus.com and through mail order catalogs. Their recent
Pokemon League has been a tremendous success. Thousands of kids across the
U.S. have been signing up to play their favorite trading card game as part
of the official Pokemon League sponsored by Toys "R" Us. The free Leagues,
which launched last week at Toys "R" Us stores across the country, meet
weekly, usually on Saturday, offering kids the chance to learn, play, teach
others and have fun with the hottest toy phenomenon of the year: Pokemon.
More children in their stores has to equal more sales. I think they may
have turned the corner after losing market share last year to Wal-Mart. If
so, they should benefit from the Christmas selling season.
TOY at 16 ¼ is at the top of a Short Term Up Trend Channel (STUTC). It
is trying to break out of a cup formation that started from a high of 16 3/8
that was set a couple of months ago. It traded above 16 3/8 Friday but
pulled back to close below it. TOY set an all time high double top of 37
5/8 on 11/11/96 and 37 1/8 almost a year later on 9/3/97. From there it ran
into the stiff toy selling competition from Wal-Mart and other discounters
and fell in a zigzag pattern to a low of 13 1/8 on 9/2/99. From there it
moved up to form the current STUTC. The Tema PV Binary Wave just turned
positive and the Tema StochRSI 21 is rising and positive. That's usually a
good entry point. The fundamentals are good with a price/sales of 0.4,
debt/equity of 0.34, revenues are beginning to rise again, and hopefully
earnings will follow. I want to open a position in TOY when, and if, it
breaks out of the cup formation. I'm going to enter a buy stop at 16 ½. If
I get the position, I'll set my target just under the double top at 37 and
my stop just under the STUTC at 14 ¾.
See chart at http://www.geocities.com/jimginva/
JimG
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