E - Commerce is hot
On Financial Tides we look for stocks that should give you an immediate return and GSI Commerce fits the bill. It came up on my BarChart screening for stocks that continue to hit new highs. GSIC has had 13 price advances in the last 20 trading sessions and is 3 for 5 recently. It has enjoyed a 39.25% price appreciation in the last 65 days. BarChart's technical indicators are 12 out of 13 buys for an over all buy rating of 96%.
The company develops and operates e-commerce sporting goods businesses for specialty retailers, general merchandisers, Internet companies, and media companies under exclusive long-term agreements. The company enables its partners to capitalize on their existing assets to exploit the online opportunities in the sporting goods industry. The company's scalable business model takes advantage of its proprietary technology and product database, customer service capabilities, relationships with vendors,and centralized inventory management.
Wall Street like them too. Of the 21 analysts following the firm 17 have buys -- 4 holds and no under perform or sell signals from any of them. They predict a 29.5% increase in sales and 263.6% increase in the bottom line -- very optimistic!
Other sites like them too. Walls Street Survivor has a Survivor Sentiment rating of 5/5, fundamental of 5/5 and a technical rating of 5/5 -- you don't see that very often. Over on Motely Fool CAPS members think the stock will outperform the market by a vote of 128 to 33 with the All Stars in agreement 36 to 9. The Wall Street columnist Fool follows like it 17 to 1. The lone under perform was Jim Cramer. I don't often defend Cramer, not even against Jon Stewart but to be fair his sell signal was 3/22/2007 and he would probably change his mind if he revisited it.
This stock crosses my hurdles:
1 - Price appreciating in more than 50% of the recent trading sessions
2 - If Wall Street brokerages are following the stock -- no recent trash talking
3 - Other sites confirm my research
Recommendation: GSI Commerce -- GSIC looks like a buy around 24.75 with a stop loss of no less than 21.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com
Disclosure: No positions in this stock at the time of publication