Tuesday, June 28, 2011

Fossil is no dinosaur

Chart and complete article

It's hard to find stocks that have double digit projections for both sales and earnings but Fossil (FOSL) has that plus a 100% Barchart technical buy signal.  A few years ago there were predictions that the youth were not buying watches because they used their cell phones as time pieces.  Someone forgot that a lot of watches are not time pieces but are jewelry accessories and Fossil fills that niche.  I'm sold  on the recent price momentum.

Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above it's 20, 50 and 100 day moving averages
  • 11 new highs and up 10.03% in the last month
  • Relative Strength Index 71.14% and climbing
  • Trades around 113.42 with a 50 day moving average of 100.41
Summary:  Watches are still in but as fashion jewelry not as time pieces and Fossil (FOSL) fills that niche nicely,  Higher per watch prices through partnerships and increased consumer buying in Asia make the double digit growth of both sales and earnings possible. Investors should see an 8%  - 9% annual total return over the next 5 years.

Jim Van Meerten is a Marketocracy Master

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