Technically speaking, Pier 1 achieved an "Ascending Triple Top Breakout" on January 16, 2009 on high volume and continues to climb after earnings.
The breakout implies that the buyers are now creating more demand than there is supply and therefore the prices are breaking out.
I think there is a technical rally going on the stock market, in general, and current price is 3.25.
(PIR) Pier 1 has a beautiful ascending chart, maintaining price above the 50 day moving average for months now.
There might be a small pullback due to profit taking in the short term, but, in my opinion, as long as the S&P marches toward 1200, (pir) will follow along.
Enormous volume on September 17 @ $3.27 as shorts are taken down and people take profits and others view this as an entry point due to good technicals.
Forward looking statement by Pier 1(9-17-09)
"...Our level of clearance inventory is very low and our initial markups are strong. Consequently, we expect to continue to see significant improvements in merchandise margin on a year over year basis. As previously indicated, our purchases for the fall and holiday selling season were less cautious than the first half as we anticipate a stronger sales trend in the third and fourth quarter. Customers are responding positively to our fall merchandise, and although it is early in the quarter, we are generating positive comparable store sales so far in September. Our stores look really good and we are looking forward to the holiday transition which will begin in October."
$2.91 (09/17/09)
