Trans World Entertainment Corp (TWMC)

Company

"Trans World Entertainment Corporation is one of the largest specialty music and video retailers in the United States. Founded in 1972, the Company currently operates over 800 stores in 26 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and operates a retail Web site at www.fye.com. Its stores are divided into two categories: mall-based and freestanding. Trans World's national mall-based portfolio is now united under the brand name FYE, for your entertainment; the portfolio also includes select Saturday Matinee movie stores. Freestanding stores include Wherehouse Music, Coconuts Music & Movies, Strawberries, Spec's, CD World, Streetside Records and Planet Music." (company website)

Buy

13-Mar-06. TWMC bottomed out in January and has been consolidating just above the 50-day moving average, that is still falling, but looks to be stabilizing. Earnings were reported last week without any dramatic reactions.

• Price momentum (PPO) — slowing slightly
• Trend (ADX) — has been weakening, but buying pressure (+DI) is picking up
• Money flow (CMF) — was strongly positive but now neutral
• Relative strength (RSI) — neutral
• Volume — breakout above $5.25 was on very heavy volume, stable since then

TWMC is oversold (StochRSI), and this is an "early buy" adventure.

Sell

24-Mar-06. The adventure wasn't so much fun. TWMC has been bumping along and going nowhere. True, the 50-day moving average is still rising, but I see signs of weakness in the chart: Price momentum (PPO) hasn't changed; buying pressure (+DI) is falling; relative strength (RSI) is weakening; and the more-sensitive stochastic RSI keeps recycling into oversold.