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

February 1, 2001

Wednesday’s decision by the Fed to cut interest rates by 50 basis points helped to bring a flurry of buying activity back to the retail sector. What’s more, CHBS today announced an 18% increase in January same-store sales for its five-week period ending January 27th. As for the stock, CHBS shares gained $4.69, or 11.17%, on the announcement, which set off the rally to new all-time highs. More importantly, though, the stock was able to break sharply above tough resistance at $45, which will now be our initial foothold on the downside. A sharp bounce off this level could generate some intra-day buying. Just lower, we’ll next expect the 5-dma of $42.59 to present another good entry level, should the stock bounce sharply from it on volume of at least 90,000 shares by noon. As for resistance, we can now look to the half-century mark ($50). Given CHBS’s quick 65% increase in just the past month, we want to point out that resistance may still arise at any level ahead of the $50 mark. With that said, you may want to consider using a trailing stop loss strategy to help protect gains. To that end, we are recommending that stops be lifted to $42 to protect against a possible reversal.

Picked on January 18th @ $36.25
Change since picked +10.38
Stop Loss @ $42.00

January 30, 2001

CHBS shares continued to tread higher today and set a new all- time high of $44.50. Although sellers came in at this level and sent the stock reeling lower for a time, the shares still managed to recover and post a $0.19 gain, or 0.43%. A peek at the intraday chart shows that in the last two hours of trading the stock was able to bounce $2.56 from its low, on increasing volume. This is an indication that CHBS may continue to rally into Wednesday. As it now stands, the stock will likely face its initial test at the all-time high of $44.50. We’ll expect a much tougher challenge to be summoned at the $45 mark. Should the stock bounce sharply from this level, you may want to consider locking in recent gains. However, should CHBS advance through resistance on good volume of 175,000 shares or better, and then look for potential entry points. With that said, look for the next resistance level to come at the half-century mark ($50). As for support, we can expect today’s intraday low of $41.31 to present some protection ahead of a stronger base at $40, bolstered by the 5-dma of $39.39. If a hard bounce can cause prices to reverse sharply from support, then look for potential entry points. Set a tighter stop at $39, which will help to lock in gains but still give the stock some room to maneuver.

Picked on January 18th @ $36.25
Change since picked +6.69
Stop Loss @ $39.00

January 28, 2001

A newly implemented point-of-sale inventory tracking system should now allow CHBS to better analyze the purchasing patterns of its niche customers. The company also gains a competitive edge through its product-testing program, which helps to identify consumer demand for clothing styles. On Friday, CHBS shares sprung sharply higher, gaining 2.13 points or 5.81%, to close at $38.69. Although the company reported no news, the stock was able to generate heavy volume of 481,300 shares. A large portion of this volume occurred as shares exceeded their previous high of $37.94, which could mean that momentum players are starting to once again take positions. With that said, we’ll be looking for the next major test of resistance to come at $40, bolstered by an intermediate top formed in early November. Just higher, the all time high of $41.88 will provide the last challenge before CHBS advances into new high territory. Should shares advance through either of these levels on good buying of 160,000 shares or better, we’ll look for potential entries. However, should CHBS retrace prior to an advance we’ll expect the previous high of $38.69 to now act as support. A secondary level of support should follow at the recent consolidation near $36, braced by the 10-dma of $35.67. The 100-dma of $33.58 will present our lower support range and could be the last line of defense ahead of our stop at $32. Remember to confirm sharp bounces off support with good mid-day volume of at least 80,000 shares, prior to opening positions.

Picked on January 18th @ $36.25
Change since picked +2.44
Stop Loss @ $32.00