The Bon-Ton Stores, Inc. (NASDAQ:BONT)
Q: Dear Sir I am a shareholder of Bon ton stores (Bont) in Holland, and wondering about the expectations of this share Coming from well over USD 50 to a depth of less than 1 USD I am wondering why there are such big fluctuations in the price of this share. Latest cost-reductions (about 3 USD a share) and a contineously improving gross marging would justify a higher price. Can you share your views with me?
Many thanks Revo
A:We currently have BONT in a Downtrend. We issued an alert back on 4/12/07 at $52 which was a pretty good call. After a few subsequent trend changes, BONT is currently in a Downtrend after it hit resistance at about $5. The stock came close to its 200-day moving average and has since bounced and trying to rally but our system has not changed the trend direction. Our indicators are starting to tick higher which is a good sign for near term movement. Retailers have suffered greatly in 2008 due to the slowdown in consumer spending which is the large reason for the decline. This is not unique to Bon-Ton by any means.