Right now, FRED is overbought. I would not be surprised to see it drop 20-40% off of it's eventual (which I believe we've seen) 52-week high. The retracement is not an if, it's a when - and it's coming (it may already be here). One more time, FRED is currently overbought.
That said, I have the truck ready to back up at the -25% level - I'm willing to risk the additional 15% downside on the short-term in exchange for the huge long-term upside.
stockastic says oversold. August same store sales up 7.3% on top of last year's up 11%. We've had a minor correction in sympathy for some other retail stocks that were down. Why do you think its overbought?
Another stock split, greater brokeage firm research coverage and a major management presentation to institutinal investors in fourth quarter of this year offers another 10-20% upside in my opinion in the next two months. Company is just now coming on the radar screen of major mutal funds etc now that its market cap has moved over $1.0 billion. 2004 will be a BIG year for FRED stock as the company enters into a new state or two and major investors realize this cold be a NATIONAL chain with more than 2,000 stores i.e. 4X the current size. For all those who missed WAl Mart in the 1980s, Bed Bath and Home Depot in the 1990s, watch Freds in the next 5 years! P.S. all the analyst are underestimating opeating leverage and the upside to margins that the new distribution center here in Dublin , Georgia and any unannuoced third distribution center will be able to generate.