by Sam Collins 04/01/08
Rent-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.
On Jan. 3, the Trade of the Day said, "The common stock of RCII fell from over $30 this time last year to under $14 in November. But since then, the stock has picked up buyers and the analysts covering it have a consensus buy rating on the stock. Positions taken now could prove profitable, especially if upside volume drives prices above the downtrend line at just under $16."
And on Feb. 11, with the stock at $18.85, we wrote, "Rent-A-Center has even exceeded our expectations but is approaching the 200-day moving average. It may be time for traders to cash in on quick profits while longer-term investors may still find rewards in owning RCII."
That turned out to be good advice and the stock fell to under $16. Now after pulling back, RCII is picking up buyers again and could break above $20 for a run to the mid-$20s.
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