Christopher & Banks Corp. is a Minneapolis-based regional retailer of women%s specialty apparel. As of 09/22/00, the Company operated a chain of 274 stores in 27 states, primarily in the Midwest. For the 39 weeks ended 11/25/00, net sales rose 44% to $141.1M. Net income totalled $17M, up from $6.3M. Results reflect an increase in same-store sales as well as an increase in gross margins due to improved selling at full price.

January 18, 2000

Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s apparel. Formerly known as Braun's Fashions Corporation, CHBS currently operates over 250 stores in 27 states throughout the northern half of the United States. The company has plans to open 30 new Christopher & Banks stores throughout the spring and summer 2001. In addition to good fundamental growth, the stock may also be getting a boost from yesterday’s announcement of a 3:2 stock split, its third split over the past 14 months. After the two previous splits, the company’s stock gained 157% and 70%, respectively. If CHBS’s post-split record continues, then we’ll look for another profitable run. With this in mind, we’ll look for the stock to face its initial test at the intermediate high of $37. Secondary resistance should be stiff at $40, bolstered by another intermediate high. Just higher, the all time high of $41.88 will likely hold the toughest challenge yet. Look for entry points when upside volume of 162,000 shares or better can accompany the stock through resistance. As for support, we’ll expect the $33.50 mark to hold a strong initial base, bolstered by the convergence of the 5- and 100-dma’s ($33.54 and $33.56), respectively. The 10-dma of $32.60 strengthens secondary support at $32.50, which may be the final base ahead of our stop at $32.00. We’ll use support and resistance to guide our entry and exit points ahead of the split payable date of February 12th.

Picked on January 18th @ $36.25
Change since picked 0.00
Stop Loss @ $32.00