Gander Mountain (GMTN)

Company

"Gander Mountain is a leading specialty retailer that serves the needs of outdoor lifestyle enthusiasts, with a particular focus on hunting, fishing and camping. Gander Mountain provides a unique retail experience founded upon our 'We Live Outdoors' culture and theme. Our stores offer broad and deep assortments of competitively priced outdoor equipment, accessories, apparel and footwear, combined with expert services and a unique store environment. Our emphasis on customer service is based on our store associates' extensive product knowledge and outdoor-related experience." (company website)

Buy

26-Jan-06. Gander Mountain has been in a downtrend for most of the past year (see sidebar), but its prospects seem to have picked up recently. The 50-day moving average has stopped falling and begun rising. I'm making a bet here that it is about to break through the downtrend. I hope I haven't been premature.

• Price momentum (PPO) — sharp increase in past week
• Trend (ADX) — decline in strength stabilized and buying pressure (+DI) has picked up in past week after crossing above selling pressure (-DI)
• Money flow (CMF) — still negative, but steady improvement in past two weeks
• Relative strength (RSI) — strengthening
• Volume — respectable recent up days

Sell

15-Mar-06. Gander Mountain has been zooming up since reporting surprising earnings. I decided to sell this lot (and the next one) to lock in some nice profits. I still hold one lot of GMTN that I will let ride while it lasts.