View Full Version : buy low?

09-15-2005, 08:50 AM
seems pretty low (http://finance.yahoo.com/q?s=fdo)

09-15-2005, 09:15 AM
Just think how much it could be worth if they became the Family $2 Store.

09-15-2005, 09:45 AM
i suck at technical analysis, i've only been studying this stuff for a week, and thus my advice should not be taken as such. I'm only posting in hopes that if i'm obviously wrong, someone who is good will correct me. After saying that my opinion is as follows:

i feel that a new uptrend may be starting - but im waiting for the stock to go up a little without going below the 6month low before buying because it didn't quite go above the last + day in its little sprint up earily this month.

now anyone can guess that, so i'd apprieciate people tearing appart my reasoning.

Earily september is the first real swing up its seen since mid june. Just before this upswing it hit a new low, which was not accompanied by a lower low on the ultimate oscillator, incidcating a bullish signal. In stochastics both lines fell below 20, then halfway through the little up spring of this month the K line rose above the D line and both lines rose above 20 - bullish signal. In my chart, the high crossed above the two faster moving averages, and just now the faster of the two faster MAs crossed above the slower of the two goes. While watching this stock, i'll be hoping that 1) the price doesn't drop below the two faster MAs and 2) all the MAs begin moving upward from their current position. If the above two things happen i interpret a strong possible uptrend assuming its down over the last 2 days won't drop below about 19.50 before again rising upward. All the above about MAs i'm sorry for all the faster/slower talk, i don't think my charting software uses the 20/50/200 MAs =/. Anyway, all the above on mas = bullish posibilities. And lastly due to time and wordyness the Force index is showing some upness. F2 just crossed above F1.

Like i said though, i'm not buying unless the downs from the last 2 days don't dip below 19.50 before going on a rise to (hopefully) establish a new up trend.

I want to yap more but i have to go.

Please, if anyone is good at chart reading butcher my analysis. You won't hurt my feelings, honest.

Thanks in advance,


09-15-2005, 10:32 AM
The company's future performance and profitablity, will determine the shape of the graph.

So the question is, why is it low? And when and why should it go higher?

Delta Air and Northwest Air are low. Would you buy them because they are low? You would lose a lot of money if you went around buying all stocks that are low, without figuring out why.

Is a stock low because the company is about to go bankrupt and the stocks are worthless. Or is a company having temporary trouble? How long will this trouble last?

If you saw KO in say 1998 at 80, then bought it at 65 in 1999 because it was cheaper, how would you feel today when KO is in the 40s. High stocks can go low, and low stocks can go lower.

I am not saying FDO will go lower. But before you buy, you need to find out why it has gone lower, and whether those conditions are likely to continue or change in the near future.

09-15-2005, 10:38 AM
From a quick glance, this looks like a well run company and it looks somewhat undervalued. However as Paluka points out, they have no pricing power. I think that is a very big negative.

While this may be a good long term investment, there are probably better ones.

09-15-2005, 01:11 PM
needs to bottom confirmation, over 22 should go to 24, most likely still head south from here.

09-15-2005, 10:44 PM
The problem with low cost retailers like them and Walmart is they must keep prices low. So the only way for them to grow is to open more stores. I wouldn't buy this stock unless I thought they would be looking to open more stores and grow.

09-16-2005, 09:01 AM
Its been lower /images/graemlins/wink.gif (http://finance.yahoo.com/q/bc?s=FDO&t=my&l=on&z=m&q=l&c=)

09-16-2005, 12:16 PM
There is a reason the stock is trending lower - lower earnings and cash flow in the last quarter.

09-17-2005, 06:18 PM
you need recession for these dollar stores to be hot