Another new PIC stock this week. CHS, Chico's, a retail specialty store is currently on the Highest Growth Stocks list in Value Line while also being ranked a #5 in Timeliness.
Well, wouldn't you know that in the last six months the price/share has dropped from around $50 to under $20. Hmmmmmmm. Where was Value Line with its #5 rank six months ago?
So, what should we do with such a stock? Well, let's assume we need to do a bit more study than just checking to see what the PIC list's latest addition is and dig a bit deeper.
Looking at the chart confirms the long upward trend that got it on the HGS list in the first place. It shows a 1.30 BETA in Value Line, but as you can see over the last three years, that's not been enough to trigger many 30% ZigZags along the way.
Well, so much for charts, what about some of the company's internals?
Well, it's debt free, has gained in earnings steadily for years - at a rate in the double digits - but that earnings growth slowed during the last 9 months. So, it's looking like it is going from a "high growth stock" to a "cyclical growth stock" going forward. That's not always bad for AIM users.
So, we'll be adding it to the PIC stocks and see how it performs.
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