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Wednesday, 09/13/2006 12:02:53 AM

Wednesday, September 13, 2006 12:02:53 AM

Post# of 524
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.

Best regards, Tom




Port Washington, WI 53074

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