New York & Company (NWY)

Company

"New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion-oriented, moderately-priced women's apparel, serving customers for over 86 years. The Company's proprietary branded New York & Company merchandise is sold exclusively through our national network of New York & Company retail stores. The Company operates over 560 retail stores in 45 states. Our target customers are fashion-conscious, value-sensitive women between the ages of 25 and 45." (company website)

NWY 3-month stock chart

Buy

New York & Company has been in a clear uptrend since July of 2006 (see sidebar), but I lost money on a poorly timed buy. I hope I can improve my results this time. NWY has formed a new base after jumping from the dip to $13.

  • Price momentum (PPO) — has slowed during base-building
  • Trend (ADX) — strengthening quickly, although buying pressure (+DI) did drop off after the jump
  • Money flow (CMF) — increasing inflow
  • Relative strength (RSI) — on positive side of neutral
  • Volume — a bit worrisome, since it has dropped off slightly
NWY 2-month chart

Based on technical analysis, MarketEdge calls NWY a "buy" in a "strong upward trend."

Sell

gain Bottom line
3%

No good deed goes unpunished. New York & Company reported increased sales and increased earnings, but the guidance they gave for the next quarter fell short of Expectations. Although it is still sitting just above the 50-day moving average, with the market experiencing mood-swings I don't want to take the chance of losing the slim gains that I still have. NWY had reached $16, but there are now enough signs of weakness in the chart (falling volume, falling RSI) that I simply don't want to risk a loss — I've had too many of those this month.