Sector Watch

Play of the Day
Current Plays
Watch List
New Plays
Play Updates

Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101

Play Results
Split Predictions

Ask the Trader
Trading 101
Dow Charts

SEC Filings
Coming Economic Events
BoD Meetings

Chat Room
Message Boards

Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

Play of the Day (For Tuesday)
Interactive Chart
Monday, June 11, 2001

BEBE - BEBE Stores $31.62 +0.82

Sunday's Comment:

BEBE is a purveyor of contemporary women's fashions. They market their clothing towards the younger crowd and carry everything from suits to handbags. Their operating margins of 14.3% are impressive for a clothier and their 21.5% return on equity tells us that the company is run efficiently and effectively. In addition, they just reported May sales that were up 35% over last May's sales. If BEBE is doing this well under the current economic environment, just think what it can do in good times. It is a well-known fact that when the economy is coming out of a recession, people tend to spend money on clothes first. Turning to BEBE's chart, we can see that it just emerged from an inverse head and shoulders continuation pattern. The neckline was defined by the $29-level. The initial breakout occurred on Tuesday and was accompanied by good volume of 425,000 shares. This tells us that the rally has buying support. Another good sign was that the MACD issued a buy signal on Tuesday as well. Traders looking to get into our retail clothing play could look to do so on a bounce off of $29 or on a break above Friday's high of $31.47. In either case volume should be on track to do at least 300,000 shares for the day.

Monday's Update:

Looking at how BEBE finished Monday's session, one would never have figured that it was one of the slowest days of the year for the NASDAQ. Contrary to the overall market, our retail play powered ahead on volume of 445,000 (almost two times its normal volume of 245,000 shares) and managed to close just off its intraday high of $31.80 at $31.62. With volume so high and with the stock leaving a bullish hammer formation on its chart Monday, we are encouraged that BEBE can continue to set new highs. Traders looking to jump on board the BEBE train should wait for a pullback to near term support at $31 followed by a bounce on volume that puts the stock on track to do at least 300,000 shares for the day. Resistance has now come in at $31.80 and stronger support can be found at $29.35. Our stops remain at $27.00 to limit downside risk.

Picked On June 10th @ $30.80
Change Since Picked +0.82
Stop Loss @ $ $27.00


Play of the Day Index


Copyright 2001

Do not duplicate or redistribute in any form.
Privacy Statement   Disclaimer   Terms Of Service