Looks like some momentum comming into ELBO
(Being a value investor, I've got a problem hanging on for the climax)
Best Regards,
Mad2
From Thompson's online market comments;
ELBO -- Electronics Stores -- Services
14-Aug-01 11:15:37 Electronics Boutique (ELBO) is benefiting this
morning from a collection of positive analyst reports, adding 9.3%
on heavy volume. Last night, Banc of America upped its rating on
the stock to a "Buy" from a "Market Performer," establishing a
target price of $37. "There may only be one certainty in today's
volatile retail environment and that is that young men are buying
video games," B of A said. This morning, Merrill Lynch initiated
coverage on ELBO with a "Buy" rating, citing the company's above-
average growth potential, limited GDP risk, promising video game
market cycle, and limited competitive exposure. Lastly, Credit
Suisse First Boston kicked off coverage on the stock this morning
with a "Buy" rating, mentioning similar strengths. ELBO is trading
up $2.85 at $34, pulling back slightly from a morning high of
$34.50 as traders take profits. Volume has soared to 875k shares,
or more than double its 400k share-daily average. That said, a
diminutive 6% of the activity stems from block trades so far, as
traders try to preserve liquidity. Additionally, much of today's
action is related to short-term traders, which has reduced the
amount of block action. Much of today's gains are likely related
to short- covering, as holders cover their positions on today's
9% gain. ELBO has a short interest ratio of 8.1, well above the
industry average of 4.4. In the near-term, a key technical
indicator on the upside for ELBO is its July 13 all-time high of
$36.24. If the stock crests this level, short-term breakout
traders may push the issue higher. However, ELBO will have a tough
time sustaining a longer-term rally unless the "big money" also
climbs on board. |
