Children's Place Retail Stores

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Another name in the specialty retail complex that insiders are jumping into here is Children's Place Retail Stores ( PLCE), which provides apparel, accessories and shoes for children from newborn to 10 years old. Insiders are buying this stock into some modest weakness here since shares are off by 12% on the year.

Children's Place Retail Stores has a market cap of $1.13 billion and an enterprise value of $886.45 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 16.34 and a forward price-to-earnings of 12.32. Its estimated growth rate for this year is 11%, and for next year it's pegged at 16.7%. This is a cash-rich company, since the total cash position on its balance sheet is $204.83 million and its total debt is zero.

A director just bought 15,000 shares, or about $668,500 worth of stock, at $44.57 per share.

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From a technical perspective, PLCE is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. Shares of PLCE have found buying interest during the past month and change at around $44 to $43 a share. On Tuesday, this stock soared back above its 50-day moving average of $45.85 a share, and it's now trading with range of taking out its 200-day moving average of $48.97 a share.

If you're in the bull camp on PLCE, then I would look for long-biased trades once this stock breaks out above its 200-day at $48.97, and then above some near-term overhead resistance at $49.76 a share with high volume. Look for volume on that move that registers or above its three-month average action of 562,917 shares. If we get that action soon, then PLCE has a great chance of re-testing and possibly taking out its April high of $53.60 a share.

On the flipside, I would avoid PLCE or look for short-biased trades if it fails to trigger that move and then drops back below its 50-day at $45.85 a share with heavy volume. A high-volume move below its 50-day will setup PLCE to possibly take out those key near-term support zones at $44 to $43 a share.

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