CHATROOM

The Best Kept Secret in Retail

November 12, 2007 at 8:09 pm
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

LuluLemon Athletica (Nasdaq: LULU), Crocs (Nasdaq: CROX), Deckers Outdoors (Nasdaq: DECK) and Under Armour (NYSE: UA)—these popular apparel and footwear makers are all actively traded and are frequently written/talked about by market commentators. Well, here’s a new one to add to the group and this one is not only breaking out to new highs, it’s cheap too!

Endeavor Acquisition (AMEX) is still just a blank check company, but for the past year, they’ve been trying to close the acquisition of popular apparel maker American Apparel. The acquisition is expected to close this December, but the stock isn’t waiting—today, American Apparel reported blowout earnings and EDA responded by making a new all-time high. Retail sales rose 43%, quarterly revenues surged 34% and same store sales growth was an astounding 27%! (Remember how excited everyone got over LULU’s mid-20s same store sales growth just a few weeks ago (their stock jumped 30% within a few days afterward).

The growth and the technical breakout are nice, but what makes EDA really interesting is how cheap the stock is compared to their better known (at least stock-wise) rivals. LULU trades at 8x sales, DECK, UA and CROX (even after their massive decline) trade at 4x sales while EDA trades at just 3x sales.

EDA’s got everything going for it and that’s why the chart looks as good as it does.
eda.png

Disclaimer: Timothy Sykes has no positions, but he does own a lot of apparel made by the above companies.

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  • notesguy88

    No shares of ILE available at TOS this morning.

  • Reaper

    No ZYXI at TOS either.

  • http://www.test.timothysykes.com timothysykes

    got 300 ILE, 400 ZYXI, not even worth my time

  • Reaper

    TOS still has plenty of GTE

  • notesguy88

    yeah looks like TOS has GTE available

  • schmuck

    u guys are fast…i didnt manage to reserve ILE, ZYXI nor GTE dammit!

  • TheParadox

    i got GTE and ARNA… still debating to short into the morning rush.

  • TheParadox

    “Have some patience you little hyenas or I’m gonna have to create another DVD called Patience-ing, which would just be me standing in front of a green screen silent for 6 hours

  • TheParadox

    no, not going to play arna.

  • notesguy88

    ARNA is easy to borrow. It shouldn’t be too hard to short it but I’m gonna go with Tim and stay out of it. I got GTE as well though it took TOS some time to get the shares for me.

  • YoungGunz

    Yeah I carpooled with my wife today and have to be on the road at 7am cst. so I can’t get to the watchlist until 7:30. I got lucky before when you sometimes put out the watchlist on the timalerts.com page early and sent out the email at .

    Do you write up the watchlist right before you send it out usually? I know I am just one person but I actually liked it when you posted it to the site early or even the night before. Maybe other people disagree but would you consider posting it when you finish writing it? I am not asking that you start working on it earlier just that if you’ve already done it and are just waiting till 8am est to send it you can just get it posted and only have to worry about getting the email out at the hour.

    Like I said before I am just one person. Anyone else have an opinion.

  • schmuck

    manage to reserved 1000 shares of GTE by talking directly to the tradedesk, instead of emailing…now the waiting game…

  • notesguy88

    YG, get a smartphone and cofigure to receive your e-mails (have your wife drive LOL). Once you get the e-mail, call your broker and try to reserve shares that way.

  • youngmoney19

    This site doesn’t sound like its for a person on the go, I have no time to study charts and what not. I signed up expecting to receive definitive alerts, not morning watchlists of potential plays. Can I trade the alerts as Tim actually executes them and alerts subscribers or would that not work?

  • http://www.test.timothysykes.com timothysykes

    LOL, u get definitive alerts when i make a trade, i just havent seen anything worthwhile in the past few days

  • notesguy88

    youngmoney,

    The watchlist will indicate which shares of stocks Tim recommends to reserve. If you are on the go, you can still call your broker the old fashioned way, via phone to reserve shares. When Tim makes a trade he sends out an alert as well and you’ll get that in your e-mail. At that point you can call your broker back and execute the trade. You might not get it exactly at the price Tim got it but you can be fairly close. Of course, the best scenario would be to be at your desk and have your brokers account logged in.

  • YoungGunz

    youngmoney just look at the list of alerts when you first log in. there are more then just morning watchlists. its just been slow lately. You can see though it the list of posts ones labeled shorted xxx and covered xxx or bought xxx and sold xxx. Just be patient and actually try to learn the patterns for yourself.

  • TheParadox

    thats the problem with a trading system tim, it just doesn’t work some time… what you need to do is just make some random trade and if works randomly people will stop complaining… if it doesn’t then you just make some random excuse and say “can’t win them all”

    Don’t you know were paying you to provide quantity over quality!

  • youngmoney19

    Oh ok, one more thing Tim if you don’t mind is it harder to reserve shares of a stock to short if I simply execute the trade at the same time you send it out the alert?

  • lamecoder

    Tim no offense, but wouldn’t GERN be considered a real company?

  • notesguy88

    BTW guys, I see from TOS website that they have clients available for Windows Mobile phones, iPhones, and Blackberries. Not sure though if these mobile clients would have the chat option available. Anyone out there using these clients?

  • YoungGunz

    Oh and getting a smart phone is a lot easier said then done. Plus try explaining to my pregnant wife that I need to spend a couple hundred bucks and up our cellphone plan all so I can daytrade pennystocks. :)

    When I am through with my contract with sprint I will probably get a smartphone with my next carrier though.

    I am just a customer making a suggestion. Maybe the rest of the customers have a different opinion and I am not asking Tim to change anything just for me. Just noticed that he has posted the watchlists earlier before and i liked that and asked if he could do it more often if he’s already done and just waiting.

  • notesguy88

    youngmoney,

    It depends on the stock. If the stock is hard to borrow, most likey you won’t be able to short it at the time Tim sends out the alert unless you’ve already reserved it in the morning. Stocks like ARNA which is easy to borrow shouldn’t be a problem if and when Tim sends out an alert notifying us that he executed the trade.

  • http://www.test.timothysykes.com timothysykes

    youngmoney, u need to watch my dvd cuz right now u’re just uninformed and thats dangerous

  • http://www.test.timothysykes.com timothysykes

    LOL GERN a real company LOL LOLOLOLOLOLOL

  • youngmoney19

    Guys I appreciate the responses, I want to make one thing clear though I just signed up for this service yesterday I didn’t come into this expecting Tim to be flooding my inbox with emails I simply want to know how to best utilize the system. I am on the west coast and I work a lot, I don’t have time to comb through chart set ups from the morning watchlist and what not so I want to be able to execute my trades at the same time Tim does. So get it clear guys I rather wait here patiently then lose money, I was just inquiring about how a person on the go with nothing more than their phone in tow can make money with the service.

  • youngmoney19

    Btw Tim I think I will be picking up that DVD of yours.

  • PCola

    notesguy, I use the TOS blackberry version constantly. Made a bunch of money trading from the Jersey shore last week! I freaking LOVE it.

    But no, there isn’t a live chat feature. To reserve shares you’d have to call them.

  • Sean

    Shorting penny stocks while watching every bid/ask change and cutting losses at .5% or less is a high probability method – when combined with a good sense of support, resistance, and market fear… But WTF, it’s not worth the trouble when you can’t get shares to trade your best charts. Gotta try other brokers. TOS is consistently short on short shares at even 6am cst.

  • Mark

    PGTI anybody?

  • notesguy88

    youngmoney, I think I spelled out the “method” to use Timalerts when on the go and I assume that you have the capability to retrieve e-mails via your phone.

    1. Read the morning watchlist and identify the stocks Tim recommends to reserve.
    2. Call your broker and request to reserve these shares (you might or might not be able to reserve shares but we all experience that regardless of how we contact our brokers).
    3. If and when Tim sends out an alert during the day informing us that he’s executed a trade of any of the stocks he’s reserved, you call your broker and execute the trade as well assuming you’ve also reserved the shares.
    4. Tim will send out an alert as soon as the closes the trade and then you’ll do the same.

    I think this could work for those of you who are constantly on the go.

    Now I hope Tim doesn’t whack me in the head. LOL

  • TheParadox

    ym,

    Tim provides the watch list so you can contact your broker and reserve shares to short… if you don’t reserve some of these shares… you simply wont get them, that’s one BIG perk over not having the service. Another huge advantage is Tim will inform you when to trade, he has been right on like 90%, if nothing is for sure profitable, he doesn’t play, the alert doesn’t make it and nothing happens. I’ve trade some stocks Tim mentions and have made some, and lost some… about -12.01 so far after commissions…

    i have like 50/50 odds… Tim likes to play with 90/10 odds… just look at the actual trades… be patient, and when something moves, we’ll know. You can get you email client or browser (Firefox) to notify every minutes if you get an email… mine checks like every 30 seconds. when Tim sends anything out, i get this LOUD windows TADA.wav… i got the tada on USS and watched it dropped. my account wasn’t fund thou.

  • http://www.test.timothysykes.com timothysykes

    TOS and every other broker will be short on shares on non-ideal plays, deal with it

  • notesguy88

    PCola, that’s cool! I have a Blackberry from work too but they won’t let me install any software on it. I have added TOS’s thinkmobile url to the browser though and I can trade that way. I figured there wouldn’t be any chat options so if I’m out of the office when Tim sends out alerts I’ll have to make sure I have TOS’s trading desk number and my account number with me. :-)

  • lamecoder

    I would take a guess that GERN’s intellectual property alone would sell for more than their market cap. Anyway the price has gone up alot over the last few weeks. I’ve watched that stock for about seven years now and if you shorted when it was up around 12 you’d be pretty happy right now.

  • notesguy88

    Dang, I posted alot here today. Too bad it doesn’t count towards my Timbucks. LOL

  • PCola

    notesguy, my work would pay for mine, but I’d rather pay the $85 a month myself and be able to do what I want with it, rather than jump thourgh hoops or just not be able to do stuff that I want to.

  • notesguy88

    Oh man, making money from Timalerts while on the Jersey shore. Now that’s the way to go!

  • lamecoder

    I’ll stop posting about GERN now, but don’t you think the recent rise might have something to due with the expectation (possible) of a more liberal president being elected that is friendly toward stem cell research and GERN being considered a leader in the field?

  • PCola

    None of it was from TimAlerts, just my own trading. I actually haven’t done one of Tim’s trades in almost a full month. Occassionally from not being able to find shares, and occassionally because I only follow someone else’s plays if I’m virtually 100% convinced that a given trade will work, so some I just wasn’t comfortable playing, so i didn’t play them. Obviously I would have made money if I had played them, but I’d rather miss out on some that I don’t feel sure about than risk losing money on one that I didn’t feel was right for me.

  • sagar28

    Hows TLGD looking?

  • Reaper

    LOL lamecoder

  • lamecoder

    I sound like a pumper, haha.

  • kelvin

    anyone short GTE ?

  • MikeY

    I was going to short GTE, TOS has 500 shares available but being super slow in responding

  • TheParadox

    what is up with GTE, not the typical price action this morning… anyone short?… did everyone short?

  • kelvin

    not yet .

  • MikeY

    I shorted @ $5.15… dumb move… still learning this…

    Thinking whether I should cover???

  • Reaper

    Wow, IB has 30k shares of WCIMQ available to short. I just shorted 4k. Nothing easier than shorting a bankrupt company and then waiting a few weeks.

  • TheParadox

    i think i would cover if it went above 5.40

  • Ross

    I have 500 reserved shares of GTE But I don’t know if I will short today. I still need to get the TOS interface down better and the mechanics. Do I cancel and replace but then what? I assume I change the price to the highest I want to short @ and I place and order to buy back shares when it gets to the price I feel it has bottomed with a little wiggle room. I operate a sophiscated recording software but this is still kind of intimidating right now.

    Newbie (rolleyes)

  • YoungGunz

    ON ToS with a hard to borrow stock you get the broker to put in a sell request at a really high price. Then when you’re ready to actually jump in and sell you do a cancel and replace. there is a little padlock symbol next to the price that you click to lock or unlock. make sure it is unlocked. then you just hit submit and confirm and it will send out a limit order at the current ask price. You can change that to a different price and lock it in but if the price is moving down you’re going to end up missing the wave if you lock the price down higher then where it is by the time you get the trade off.

  • patelt78

    Ross, you change your LIMIT order to a price that is the lowest that you want to short at. So, say you currently set your limit order to sell 500 shares at 7.00. Then later today it is trading at 5.05, and Tim sends out an alert. (hypotheitical situation of course, I’m not implying that Tim will send an alert). Then you would modify your limit order by lowering the price. Set it to the lowest amount that you will accept for a short sale. The broker has to sell at that price or higher. So, if the stock is trading at 5.05, you could change your limit oder to sell at 5.00. The broker will only sell at 5.00 or higher.

    When you want to cover, then you place a buy limit order. The broker must buy the shares at the price you specify or lower. So, the price you specify is the highest that you are willing to cover at.

  • YoungGunz

    To cover a short sell on ToS you just put in a buy order on your own for the amount of shares that you’ve already sold. when the price gets to a point that you want to buy it back you just submit the order and confirm. Go to the think or swim help menu and you can get video tutorials on how to use each tab in the think or swim software. click on the trade tab and you’ll get a list of tutorials in that section and one of them is buying and selling.

  • Ross

    Thanks guys this is really helpful.

  • YoungGunz

    GTE is getting nice sideways action. Only .07 above its opening price. Hopefully it stays level to the afternoon to just a nice fade into the close.

    ZYXI, developing nicely too but I couldn’t get shares. ILE is flat as well. All showing a little more potential then everything earlier this week.

  • kusumo

    TLGD moving sideways too.

  • Ross

    I didn’t reserve any TLGD today. I wonder if I should. :chin:

  • Reaper

    Tim, why don’t you drop by GOTS chat anymore?

    GTE stubbornly refusing to do anything interesting.

  • Reaper

    CSAR, YTBLA interesting. I failed to locate any YTBLA shares to short.

  • TheParadox

    while it might be overly optimistic. GTE is showing the same exact Intra day pattern as USS when it tanked. 3 highs, met resistance, stayed flat and slide in the afternoon before being sold like it was infected with the plague.

  • Reaper

    USS was up a lot more — 3 big up days.

  • bigjimstradingpost

    Did anyone score any SOLR on Monday when I made the bottom call in the low $10s? I told you she’d be back to $12 by the weekend…

  • TheParadox

    i didn’t know TOS had a “radio staion” (WTOS) built into the software! Its kinda cheezy but cool at the same time… what a buncha trading nerds! I love it!

  • YoungGunz

    @paradox

    GTE was only up yesterday not 3 days in a row. It was up pretty good in that one day and sideways now so there is a good chance for a short this afternoon but not like USS which had 3 big green candles before it tanked.

  • YoungGunz

    @Tim

    “if I sent out any alert, I would

  • TheParadox

    well, someone just made gte RED on the day, and it looks like its sticking

  • patelt78

    I’m not seeing GTE red on the day.

  • YoungGunz

    its dancing around the opening price. I have my shares working at $6.5 ready to jump in if this thing falls.

  • bigjimstradingpost

    SOLR just blew thru $12.41…up 12% for the day… Up 20% since my call on Monday… not sure how much more room she has to run short term… she bounces between $11.75 and $13 a lot.. recent spat of IPO related class action suits announced after the close on Friday pushed in to the mid $10s on Monday.. Unfortunately I bought Friday and just pulled out after making a small gain…but better than being down the $10K I was all week :-)

  • bigjimstradingpost

    Christ..just sold out the last of my SOLR at 12.75…

  • bigjimstradingpost

    And it doesn’t look like I can short it as it just IPOd on the in late July…

  • bigjimstradingpost

    I’m calling the bottom on ZOLT at $20.55. Expect to see $23 again next week. She floats between $21 and $25 a lot.

  • TheParadox

    its like everyone is just watching GTE or something

  • das317

    Just shorted 3000 ile @ 1.57. What do you think Tim? I waited for to go negative on slowing volume.

  • YoungGunz

    yeah i am thinking GTE has a chance if it cracks 5.10. ILE has barely moved since it recovered from the morning panic.

  • YoungGunz

    if it breaks $5.00 it’ll probably take a bunch of stop losses with it too.

  • sagar28

    man.. should’ve shorted that ambac bitch

  • http://www.test.timothysykes.com timothysykes

    bad das317, u didnt wait for a crack of the sideways price action, thats the most important, otherwise its just bumping all around and shorts could get squeezed

  • das317

    Damn! Well, I’ve got it at least over night due to no day trades available..I’ll hope for the best! I live 30 minutes from the piece of crap company.

  • YoungGunz

    so whats at the top of your watchlist now Tim? Anything standing ready to fall?

  • bigjimstradingpost

    calling AKAM a buy at $22.25 and LLNW at $4.02

  • YoungGunz

    man, GTE is just hanging onto 5.13 for dear life. It falls to 5.12 then scurries back to 5.13 again. I want to see this thing break 5.10

  • Reaper

    GTE stick a fork in it.

  • MikeY

    Still hanging on to my short of GTE @ $5.15 this morning…

  • Ross

    Zolt is dropping pretty fast. 20.31

  • http://www.test.timothysykes.com timothysykes

    get isnt up enough to really interest me, was watching NOBL for possible overnight buy, but it just broke intraday support so probly no thank u

  • notesguy88

    Wow.. vrnm really tanked today.

  • bigjimstradingpost

    SOLR back in the strong buy range at $11.40
    Crazy trip on that one today..

  • schmuck

    tim what was your entry px for NOBL?

  • http://www.test.timothysykes.com timothysykes

    see the next post, bought at 5.02ish

  • schmuck

    scratch my qn just saw that it was 5.02…i got in only at 5.40

  • Ross

    noble just dropped $2.00 after hours

  • schmuck

    and did u see that from Ross??!?!

  • Ross

    Google Finance

  • schmuck

    strange…dont know where google finance gets its quotes from, but at TOS u can sell your shares at 5.31

  • Ross

    The ask is also @ 5.70 on TOS. There will be a run up tomorrow is what Tim is predicting even higher then the current Ask.