Earlier today I noticed that my Abaxis stock was closing in on my first targeted appreciation point--a 30% gain--and I sold 1/7th of my position or 30 out of my 210 shares at $36.74. This left me 180 shares in my trading account. I had purchased these shares just 6 weeks ago (!) at a cost basis of $28.29. Thus, I had a gain of $8.45 or 29.9% since purchase.
ABAXIS (ABAX) IS RATED A BUY
Since I was at 13 positions out of my potential of 20 position portfolio, this sale at a gain entitled me to add a new position to the account. Checking the list of top % gainers on the NYSE today I noticed that Movado Group (MOV) was an acceptable candidate for my account and purchased 210 shares at $32.09. At the moment, Movado (MOV) is trading at $32.49, up $1.52 or 4.91% on the day.
MOVADO GROUP (MOV) IS RATED A BUY
Why Movado? And why now? Very simply, when I had my 'permission slip' to buy a new stock, I started scanning the lists of top % gainers. That includes stocks on the NYSE, NASDAQ, and AMEX. I was looking for a stock that met my criteria that was on those lists
today! I eliminated stocks under $10--I get shaken out of those too quickly, and came across Movado that seemed to fit the bill.
Briefly, on December 6, 2007 (5 days ago) Movado reported what appears to me to be a very strong 3rd quarter earnings report. Net sales were up 8.3%, and that included a comparable store increase at the Movado boutique stores of 8.8%. Net income and earnings per share were also up nicely.
In addition, the company announced a 'share repurchase program', beat expectations and raised guidance. What else could an investor want?
Longer-term, the company has steadily raised revenue, has recently been growing its earnings, raised dividends, kepts its shares outstanding fairly stable, and has been reporting positive and increasing free cash flow and a solid balance sheet.
Valuation appears reasonable with a market cap of $846.56 million, a trailing p/e of 17.45, and a PEG ratio of 1.32.
The chart appears reasonably strong with the price under a small amount of pressure recently.
Anyhow, I now own shares in Movado Group (MOV). Wish me luck!
