Kohl%s Corp. operates family oriented, specialty department stores primarily in the Midwest and Mid-Atlantic that feature quality, moderately priced apparel, shoes, accessories, soft home products and housewares. For the 39 weeks ended 10/28/00, sales rose 33% to $3.93B. Net income rose 41% to $193.7M. Revenues reflect comparable store sales growth and the inclusion of revenues from new stores opened. Earnings also reflect higher gross margins.

January 14, 2001

Kohl's Corporation operates family oriented, specialty department stores. The company sells apparel, shoes, accessories and home products targeted to middle-income customers in the Midwest, Mid-Atlantic and Northeast areas of the United States. Shares of KSS have been hot over the past year. While most retailers just reported dismal sales figures for December, Kohl’s surprised analysts with stronger than expected sales figures. The stock hit an all-time high of $70.13 on January 4th, which represents a 108% gain for the year. Since then, KSS has tested support and is now attempting to break out. We believe that the stock could make new highs and we are also looking for a stock split. The company has enough shares for a split, with 800 million shares authorized and 331.7 million shares outstanding and is also approaching historic split-levels. Their last two split announcements came at the $70 level and coincided with earnings releases. Going forward, support is the 5-dma at $66.25 with stronger support at the 10-dma, currently at $65. Resistance is Friday’s intra-day high of $69.19 and then the all-time high of $70.13. Traders should look for entry points on a bounce off of $66.25 or a move above $69.19 on volume of at least 1 million shares by midday. We are using stops at $64.88 to limit potential losses.

Picked on January 14th @ $68.56
Change since picked +0.00
Stop Loss @ $64.88

January 18, 2001

Kohl's Corporation is losing its momentum along with most of the retail sector. KSS has now made two lower highs on declining volume and it closed below the 10-dma for the first time since December 26th. On Thursday, shares of the mid-western department store owner traded to an intra-day low of $65.75 on volume of 1.01 million shares. From a technical perspective, support has come down to Thursday’s intra-day low of $65.75 with additional support at the January 11th intra-day low of $65. Resistance is the 5-dma at $67.93 and then Tuesday’s intra-day high of $69.31. Traders should be looking for a bounce off of $65.75 or a move above $67.93 on midday volume of at least 1 million shares before opening new positions. We are leaving our stops at $64.88 to limit potential losses.

Picked on January 14th @ $68.56
Change since picked –1.94
Stop Loss @ $64.88

January 16, 2000

Mid-west department store operator Kohl's Corporation has met with resistance at $69.25 in the past three sessions. On Tuesday, shares of KSS hit an intra-day high of $69.25 before reversing directions to close at $68.38 on volume of 1.18 million shares. However, the stock remains in an upward trend, making four consecutive higher lows. Hopefully, the stock will be able to break through resistance on earnings news from the retail sector. For now, support is the 5-dma at $67.06 with stronger support at $65.75, the 10-dma. Resistance is Tuesday’s intra-day high of $69.25 and then the all-time high of $70.13. A bounce off of $67.06 or a move above $69.25 on volume greater than 1 million shares by midday may be possible entry points. We are keeping our stops at $64.88 as downside protection.

Picked on January 14th @ $68.56
Change since picked –0.19
Stop Loss @ $64.88