Chico's FAS (CHS) NewsBite - CHS Falls on Disappointing Sales

Posted on Wednesday, July 09, 2008 11:39 AM

Chico's FAS (CHS) opened at $5.33. So far today the stock has hit a low of $5.1 and a high of $5.45. CHS is now trading at $5.27, down 0.05 (-0.94%). After hitting a one-year high of $25.10 last July, the stock hit a one-year low of $4.89 on Monday. CHS shares are declining today after the company reported June same-store sales dropped 12.9 percent, slightly better than the 14.2 percent drop expected by analysts. However, judging by today's action, this was not good enough to ease investors' worries. Technical indicators for CHS are bearish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating. For a hedged play on this stock, consider a November bear-call spread above the $7.40 range. CHS hasn't been above 7.50 since early June. The stock could gain up to 42.3% and this trade would still be profitable. [LHF- Seven Summits Strategic Investments NewsBite]