Dollar Tree Inc (NASDAQ: DLTR) At New
All-Time Highs Says Market Timer Frank Kollar
May 26, 2010 (FinancialWire) (By Frank Kollar)
Shares of Dollar Tree Inc (NASDAQ: DLTR), the largest
single-price discount retailer in the U.S., are at all-time
highs closing at $63.44 on Tuesday, May 25.
Last week Dollar Tree announced that its fourth-quarter
net income was $63.6 million, or 73 cents a share, up from
$60.4 million, or 66 cents a share, in the year-ago period.
Earnings were 92 cents a share. Sales rose to $1.35 billion,
from $1.2 billion.
The discount retailer expects adjusted 2010 earnings of
$4.29 a share to $4.50 a share, ahead of the Wall Street
target of $4.24 a share.
But higher earnings aside, Dollar Tree is rising in a
truly bad market environment. During severe declines such
as we are currently in the midst of, good news is often
ignored as investors and traders make emotional trades.
But Dollar Tree continues to rise and is a potential bullish
trade for investors willing to take on some risk.
Dollar Tree’s 50-day moving average has held all
attempts at selling and is currently at $59.35. That is
also where the stock’s lows were reached in mid-May
selling. It makes for a decent buy-stop level.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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