Wednesday, December 30, 2009

LIZ Gets a Good Plug

Arne Alsin on RealMoney.com plugged Liz Claiborne (LIZ) in his Top 10 Stocks for 2010 predictions. He like Stone Fox Capital has been bullish on LIZ for the last several months. We thought back in October when LIZ broke above $7 that our target of over $10 and hopefully $15 might be reached sooner then expected but then LIZ swooned unexpectedly back into the $4s. Now LIZ is again breaking above the 200EMA and looks like a solid breakout stock for Q1 2010. Its over extended today, but we'd buy on any pullbacks to the 200EMA as the 20 & 50EMAs surpass the 200EMA back at $5.25.


Liz Claiborne(LIZ Quote): Nothing has changed since I recommended apparel maker Liz Claiborne earlier this year at $4.38 per share, and again on Sept. 16 at $6.27. With the stock trading at $4.37, it's an easy pick for the top 10 list. The company is worth far more than its current market cap of $380 million. By this time next year, the earnings power of this company will become evident. With $3 billion in sales and a diversified cadre of brands, I expect the earnings rebound will increase its value to a minimum of $1 billion to $1.5 billion, or $10-$15 per share.


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