Trade of the Day: Make a Move to Own Rent-A-Center (RCII)
by Sam Collins 01/03/08Rent-A-Center Inc. (RCII) -- This company, together with its subsidiaries, engages in the rental of household durable goods to customers on a rent-to-own basis principally in the United States. RCII's common stock fell from over $30 this time last year to under $14 in November.
However, since then, RCII has picked up buyers and the analysts covering it have a consensus "Buy" rating on the stock. Our own internal indicator, the Collins-Bollinger Reversal (CBR), has triggered a double-buy signal and the stochastic issued a buy sign yesterday. Positions taken now could prove profitable, especially if upside volume drives prices above the downtrend line at just under $16.
Sam Collins is ChangeWave's Chief Technical Analyst and a Registered Investment Adviser who manages portfolios for a fee. He can be reached at samailc@cox.net.
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