There is a pattern that could be called a Double Top, and from there it has been in a downtrend. You have lower highs and lower lows. Until the stock starts to consolidate, with no more lower highs or lower lows, and breaks past the last high and past the 200-day moving average, you are not in an uptrend.

(Top Pick Mar 3/14, Up 64.50%) It is a turnaround story.  They are comparable with any on-line retailer.  This is a well run store and they match any price you might have on a comparable item.

Retail does well From Jan to April except this year because of weather.  Also, Oct, before Black Friday.  There is some restructuring taking place.  We are in a trading channel.  He would not jump in right now.

Worst performer on the S&P thus far this year. This is a multiyear turnaround. It fell over 35% at the beginning of the year. Earnings were slightly disappointing. It leads in every single category that it has. They are turning around. They have the best price guarantee so a sales associate will match any price on Amazon. Amazon is starting to increase their rates in a way because they now have to charge sales tax in many of the states. There is a lot of low hanging fruit. They have to fix the website, fix customer experience a little bit, but if they can do that, they can selloff their Chinese affiliate which is worth hundreds of millions of dollars. Cheap and thinks it will be 30%-40% higher next year. Dividend yield of 2.67%.

Retail merchandising stocks tend to go higher at this time of year from September, right through until black Friday then the whole sector has a tendency to roll over because that is the peak of the good news for the sector. Chart shows this one had a nice run but is now showing resistance. Now is the time to take some money off the table.

Chart shows a long downward trend line from the beginning of 2011 until the end of 2012. It then broke the trend line, which is a good time to be stepping in. It broke that in its seasonally strong period which means it is actually a good position to be in. Chart shows it is coming up to some resistance at about $20 and may have difficulty getting past that. If it does, then you hang on until once again it breaks the trend line and starts coming down.

There are a couple of different dynamics on this. Fundamentals on electronic retailing have not been good for a while because of the advent of online shopping. Also, the founder has been talking off and on of buying back the company. More of a gamble than an investment.

Has a massive presence online. Probably trading at 4 or 5 times earnings compared to Amazon at about 100 times. Thinks people are overly pessimistic about this company. No question their business is in decline but maybe they’ll turn it around.