Remember to Take Your Vitamins

The Vitamin Shoppe Inc.  

With very good risk management skills managing a trade in VSI can be very profitable if you can keep a long position with a stop loss at 2.85, I honestly don't know if this company is a zero in terms of its perceived future cash flows and what type of forward earnings guidance they can give.  

The Risk-to-Reward illustrated here is about a 10-1, however risk must be respected, because the company never traded at $2.95 in its whole history.  

Will they be in the graveyard of all the retail companies going out of business when people want to spend money on their health?

Some charts are technically so damaged that there is something fundamental about a company which cannot be ignored.  In this case here, operating revenue, ROI, a troublesome debt burden

But with so many fundamental traders focusing on EPS, they are losing sight of the big picture psychologically and that in technical terms VSI is a deep value proposition waiting to go higher 

The monthly chart here is illustrating how many more "green" months have been forming in spite of many years of almost an 80% chance of it going down

I chose to put on an exponential moving average (shaded in green) to point out that we are in the late stage of a base which is ready to launch this into a multiple percentage term increase, 20% 50% 200% I don't know exactly how much it can retrace higher.  So if fibonacci's are a good guide, we'll be able to realize as much as a 23.6%  to take price to $17.82, I admit its a stretch but in my plans this won't be a long term hold or even have an interest in keeping this for a yield

Technically I believe its a good set up for its base, price and volume dynamic, and the tendency for stocks to revert back to their mean, the company averaged a price in the double digits, and it could be a very nice value for someone brave enough and coded enough to manage risk in a challenging trading environment.