Parlux Fragrances, Inc (PARL)

Company

"Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton fragrances, watches, cosmetics, sunglasses, handbags and other small leather accessories in addition to licenses to manufacture and distribute the designer fragrance brands of GUESS?, XOXO, Ocean Pacific (OP), Maria Sharapova, Andy Roddick, babyGund and Fred Hayman Beverly Hills." (company website)

PARL 3-month stock chart

Buy

Parlux has been bumping along sideways since mid-2006, with glimmers of life in the chart.

  • Price momentum (PPO) — picked up rapidly in last month
  • Trend (ADX) — after a long decline, ticked upward
  • Money flow (CMF) — hovering around the neutral area after a period of strong outflow
  • Relative strength (RSI) — above neutral and rising
  • Volume — fourth consecutive up-day with rising volumes

Based on technical analysis, MarketEdge calls PARL an "early buy" with a "strongly improving chart."

Sell

gain Bottom line
20%

Who knew? This morning an absolute blizzard of news hit the wires about PARL announcing that a long-simmering feud and lawsuit with a major shareholder had been settled, including the immediate stepping-down of the CEO. PARL stock shot up. With a gain of about 25% I immediately raised my stop-loss activation price, leaving a little room for a pullback but high enough to lock in substantial profits. There is simply no way that PARL stock will be able to maintain this price, so when opportunity knocked, I chose to answer.

If a clear uptrend develops as a result of this news, I can certainly jump in again.