As noted by Bespoke, Chico’s stock has put together an enviable string of up-days amidst a period of market turmoil. The stock has now risen for 11 consecutive trading days.
The streak started on August 22, 2008. The stock rose from the prior day’s close of 4.48 to 4.84. The following days saw the stock close at 4.98, 5.09, 5.59, 5.70, 5.74, 5.90, 6.11, 6.28, 6.32, and today 6.67.
During the 11 day period, Chico’s experienced a stream of good (or comparatively good) news to fuel the rise.
August 22- Goldman Sachs upgrades Chico’s to neutral from the previous sell rating.
August 26- Chico’s releases second quarter results, beating lowered estimates. They also state that trends are improving and they expect a profitable second half of the year.
September 3 - Chico’s signs Debbie Phelps, mother of Michael Phelps, for an endorsement deal. During the Olympic games she routinely wore clothes from Chico’s. (btw, Motley Fool called this a “dumb” move and Bespoke seems to attribute the entire recent rise to Ms. Phelps.)
September 4 - Chico’s reports August sales. The same store sales decline of 10% is better than analyst expectations.
The 11 day streak has resulted in a rise of nearly 49%. The stock has now taken out its prior recent high of 6.29. And was that a quick double bottom at 4.50?
Stock chart from StockCharts.com.
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