Continuing under Reports and Charts List..
Magazine Review.
WEEKLY MAGAZINE REVIEW-
As articles of interest from popular business periodical become
available we will provide a technical review of the companies which
are discussed or recommended. Usually there is a great story to go
along with these picks but they often ignore the technical picture
and we all know a good story doesn't mean higher prices.
(Here is some samples. These are linked on the DWA page).
Bloomberg - "Insiders' Insight, Mapping the Future" - October, 1999
Smart Money - "The Guru's View" - August, 1999
Fortune - "Musing From A Big-Think Analyst" - July, 1999
Fortune - "Mega-Deal, Mega Doubt" - June, 1999
Money Magazine - "Tech Stocks, Everyone's Getting Rich!" - May, 1999
Fortune Magazine - "Wanna Know What's Up for 1999?" - February, 1999
Money Magazine - "12 Best Investments for '99" - January, 1999
Fortune Magazine - "Ten safe-harbour stocks" - December 21, 1998
S & P Personal Wealth - "S&P Reiterates Buy on Merk " - December 22, 1998
BusinessWeek - "How Staples Is taking The Right Tack" - December 7, 1998
Once you click into one of these article links you will see the
following analysis by DWA.
BusinessWeek - December 7, 1998
In the December 7th issue of BusinessWeek on page 62 was an article
about Staples and how they are doing things right. Especially when
compared to OfficeMax. The article was positive pointing out how
well Staples stock has performed compared of Officemax this year.
So on a fundamental basis the story is positive. Here's the technical
picture.
Staples Incorporated owns and operates high volume office superstores
primarily in the Northeast United States. The company markets
products including office supplies, equipment and business machines,
office furniture, computer supplies and janitorial supplies produced
by a variety of manufacturers. This chart clearly shows demand in
control. The RS chart is on a buy signal and in a column of X's
showing that the stock is outperforming the averages. The trend is
positive and the chart has reached a new high. Notice the strong
support found by SPLS in September at 26 where it held a triple
bottom. Since holding that support the stock has given three
consecutive buy signals and made a higher bottom. Demand is in
control suggesting higher prices. However, watch for a pullback
before considering positions.
Staples Inc
SPLS (12/07/98) 38.06
Sector: Business Products (Risk: Bull Confirmed 50+) Stock Mom: Neg
RS = Buy, 09/24/91; column = Xs - Trend Chart Broke a Double Top on 11/06/98
41 Top
40 ---------------------------------------------------------------------------
39
38 C
37 X
36 X
35 -------------------------------------------X --------------X --------------
34 X X O X
33 X O X O X B Med
32 7 O X O X O X
31 X O X O X X O X
30 ---------------------------------------X 8 --O X --X O X O -- --------
29 X O 9 O X O A
28 X O X O X O X
27 6 O X O X O X
26 5 O O O
25 ---------------------------------------4 ----------------------------------
24 X Bot
23 | | 3
22 | | X *
21 | * | X *
20 -----+-------------------------C * --+-X --------------* ------------------
19.5 | X X X O * | X *
19.0 ----+-----------------A O X O X O X * X ----------* ----------------------
18.5 | X O X O X O X O 2 *
18.0 ----+-----* ----------X O --O B O X O X ------* --------------------------
17.5 | X * X X O X O X 1 X *
17.0 ----+-----X O * --X O 9 ----O X O --O X --* ------------------------------
16.5 | X O * 7 O X O O X *
16.0 ----+-----X O ----X 8 X ----------* O * ----------------------------------
15.5 | 3 O 6 O * *
15.0 * --+-----X O 4 --X ----------* ----+-------------------------------------
14.5 O * | X X O X O X * |
14.0 O --* X O X O X O X ------* --------+-------------------------------------
13.5 A B | X O X O * O 5 * |
13.0 O X O X 2 --* --O X --* ------------+-------------------------------------
12.5 O X O X * O X * |
12.0 O * C X * ------O * ----------------+-------------------------------------
11.5 * 1 * * |
11.0 ----* ------------------------------+-------------------------------------
10.5 | |
10.0 ----+-------------------------------+-------------------------------------
9.5 | |
|
