Dillard's Inc: Nice Breakout

During the past week, the market lost speed, change of character and showed a decline in technical terms. It sounds so bad? It's really not so critical. At least for now. From my point of view, there is a set of factors that are beginning to attack the market growth.

Despite this situation, our internal system has continued to find some stocks that have good price patterns. One of my favorite patterns is when a stock makes a good  breakout. Actually, I think that was the first investment strategy success consistently. I remember a time became an obsession in search breakouts I could invest my money. In the years prior to 200, we get huge returns using this simple strategy. Currently, the breakout is still one of the investment mechanism that I use personally.

Last Friday, our Stock Picks System found two interesting breakouts. One was CBS Inc. that we detail in a post yesterday. The other is Dillard's Inc. (DDS). This stock closed on Friday at US$ 62.83, an increase of 1.05%. Its volume was 800,000 shares, nearly 20% below what is traded daily. The company has a Market Cap. of US$ 3.16 Billions, a P/E of 7.22 and EPS of 8.71. Dillard's has 50.23 Millions of shares, of which 97% is owned by institutional investors.

The case of Dillard's is very interesting because it allows us to appreciate the convenience of using different time frames. This breakout is seen much more clearly when you look the chart of DDS at weekly time frame. Since July of last year, Dillard's has been building a solid base prices. Has formed a structure called "W" or "double bottom". When a stock makes a breakout after so long, is because it begins a new and important way up.

Dillard's, Inc., together with its subsidiaries, operates as an apparel and home furnishing retailer in the United States. The company offers a selection of merchandise, including fashion apparel for women, men, and children, as well as accessories, cosmetics, home furnishings, and other consumer goods. Its merchandise selections comprise lines of brand merchandise, such as Antonio Melani, Gianni Bini, Roundtree & Yorke, and Daniel Cremieux. It also sells its merchandise on-line through its Web site, dillards.com. In addition, the company operates as a general contracting construction company. As of January 29, 2011, it operated 308 retail department stores located primarily in the southwest, southeast, and midwest regions of the United States. The company was founded in 1938 and is based in Little Rock, Arkansas.