Mike Cintolo
Cabot Top Ten Trader
Geoffrey Seiler
Bullmarket.com
Sy Harding
Street Smart Report
Nicholas Vardy
Bull Market Alert

Top picks 2012: G-III Apparel


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by Todd Salamone, contributing editor Schaeffer's Investment Research

Todd SalamoneIn early December, G-III Apparel (GIII) reported quarterly earnings of $2.16 per share as year-over-year revenues rose 13.3 percent.

Earnings topped estimates of $2.14 per share, reversing a two quarter trend in which GIII missed estimates.

Additionally, the company announced an agreement with Calvin Klein to open Calvin Klein Women’s Performance stores in the U.S., China and other countries throughout the world.


GII shares responded favorably to the earnings and licensing news, which could be the catalysts for a turn-around play in the stock in 2012, following its dismal performance in the final seven months of 2011.

From a technical perspective, we view the November/December low at the 80-month moving average as a potential pivot point, a trendline that supported the stock in 2002-2003 and again in 2004-2005.

The earnings/licensing catalysts also pushed the shares back above the $22.50 area, which is half GIII’s all-time high set in April 2011 and such levels often provide strong support.

With GIII’s short interest near all-time highs after a pullback to long-term support and favorable catalysts heading into 2012, GIII is an attractive speculative play.

A short-covering rally in 2012 could rejuvenate GIII shares, which are still up by more than 500-percent over the past ten years.

Learn  more about this financial newsletter at Schaeffer's Investment Research.

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