Time To Take Profits In Charming Shoppes

| About: Ascena Retail (ASNA)
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On November 30th, I initiated a Buy-Long recommendation on Charming Shoppes, Inc. (NASDAQ:CHRS) in my article- 2 Potentially Profitable Turnaround Plays. We entered the trade at a price of $3.6 for a share of CHRS. The current price of the shares is $4.9, a profit of 36% in a month, which comes down to an annual uncompounded return of 432%. Now one must realize that even a long-term investment may evolve into a short-term trade. A competent investor must be flexible enough to realize that from time to time, a trade will happen in his favor much sooner than he previously expected. It is perfectly acceptable, and even preferable, to close the trade, bank the profits and wait on the sidelines for a possible second entry to the same security. Often, a futile insistence on the time frame of the trade is bound eventually to lead to mediocre results. Let's observe how some competitors of similar size and market cap have fared during this shopping-infested month of December:


Average Daily Volume

Stock Performance

The Talbots, Inc. (NYSE:TLB)



New York & Company (NYSE:NWY)



Chico's Inc. (NYSE:CHS)



Ann, Inc. (NYSE:ANN)



Ascena Retail Group (NASDAQ:ASNA)



The Wet Seal, Inc. (WTSLA)



One can observe that other than TLB, which performed spectacularly well on December, our CHRS trade was ranked at the very top.

My recommendation is to Sell to Close your position in CHRS. This will leave you with a hefty 36% profit on your CHRS position in a single month. We can wait on the sidelines to view a possible second entry point on any strong dip.

Disclosure: I am long CHRS.