# Alliance Data System (ADS)



## mbmb (Oct 17, 2012)

I didn’t find any discussion on this stock so I was thinking to open a new thread. 
I see that they expanded in Europe recently, plus previous expansion to Brazil. 
The stock is sitting at 52 weeks high and watching it for a while but didn’t buy because I was just starting investing and I still have predominant indexes. 
Anyone holding this stock? Would you add a new position at this price?


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## Pluto (Sep 12, 2013)

mbmb said:


> I didn’t find any discussion on this stock so I was thinking to open a new thread.
> I see that they expanded in Europe recently, plus previous expansion to Brazil.
> The stock is sitting at 52 weeks high and watching it for a while but didn’t buy because I was just starting investing and I still have predominant indexes.
> Anyone holding this stock? Would you add a new position at this price?


1. I'm not super familiar with this company, but on a cursory look it seems sound. It should be on your watch list. 
2. My opinion is, don't buy now. Wait. Explanation: -

Look at a chart by going to yahoo finance. Type in the symbol, and choose interactive charts. On chart settings choose Log Scale. On technical indicators choose Moving averages. Type in 50 day, 200 day, and 270 day. Then look at a one year chart. 

The 50 day MA should be red. It represents the price 50 days ago. Where is the current price relative to 50 days ago? Quite high. Looking at the chart, what happened in the past when the current price got way above the price 50 days ago? It came down to the 50 day price. That's a buy point (in a bull market). So my opinion is, if you decide to buy it, do so at or near the price 50 days ago. 

3. Look at a longer chart, say going back to 2002, and look up to march 2009. Even with the economic and stock market debacle its low in march 2009, was higher than in 2002. shows staying power. You might want to study the chart between Oct 2007 and march 2009 to get an idea of potential losses for those who bought at a top. 

For a beginner, I think you have good radar. This is the type of company you want on your watch list. After that, timing is everything.


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