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 6, 2001

Monday’s price action saw CHBS vigorously attempt a break through heavy support at $50, but a wave of selling came in ahead of this level and sent shares reeling to our stop of $44.50. All told, we’re pleased with the 8.25 points that CHBS shares were able to generate in such a short period of time.

Picked on January 18th @ $36.25
Profit/Loss = + 8.25 (+23%) (Stopped Monday @ $44.50)
Best Profit = +13.50 (+37%)

February 4, 2001

The recent volatility of the stock market, as well as investors’ lack of interest with technology stocks has left investors seeking out strong stocks within in the retail sector. With steady improvements in same-store sales and a long history of meeting earnings estimates, CHBS continues to be a standout performer in the group. Friday, CHBS shares resumed a weeklong breakout and ascended 1.63 points to another all time high of $48.25. The 3.48% advance came on excellent volume of 727,800 shares, which leads us to believe that a test of the $50 mark could be in store for next week. An advance through this level could present us with additional entry points, should the stock be accompanied by volume of at least 190,000 shares. A further ascent will likely face greater resistance at $55. A strong uptrend and plenty of buyers lead us to believe that either of these two levels is certainly obtainable. Furthermore, the payable date of February 12th still gives us 6 trading days for momentum to carry the stock higher. On the other hand, should the stock retrace before running higher we’ll look for support levels to come in at $45 and the 5-dma of $44.53. The 5-dma will be the last line of defense ahead our raised stop of $44.50. So, time your entries carefully and remember to let strong volume confirm bounces off support, prior to opening plays.

Picked on January 18th @ $36.25
Change since picked +12.00
Stop Loss @ $44.50