<< BBA - volume looks like its picking up. >>
Especially important since during the prior three months, volume had dropped to way below average. This drop off usually demarks the transition phase before the unfolding of the next story.
If you look at a long range chart, 8 yrs or so, you will observe a large rounding saucer bottom also characteristic of bottoming of sold out depressed stocks.
If you sample yahoo BBA, until this past week you will notice a lot of disappointment in this "non performer."
In sum, the trend may be turning.
The fundamentals also have reason to be there. A couple of good quarters on top of the management shake up and new merchandising initiatives and then there are good reasons for large funds to take a position. By the way, look for these fundamentals to be reflected in the technical pattern before they are announced in the financial reports. The announcements will provide the basis glowing reports and recommendations.
Remember, this is a big stock with a squeeky clean ultra conservative balance sheet. Once it begins to move, there is a lot of upside room for a serious trend to develop. Also, despite overly generous options for officers, the share buyback program will on balance have a beneficial effect.
The lack of movement, despite the high volume, is an indication of digesting supply from those whose perspective is short term or are generally unwilling or unable to wait for several months and quarters. We should see them coming back, once prices clear roughly 8.
For some blue sky, my targets are double digits within 6 months topping out at 18 to 28 within 3 years.
Ed Perry
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