My Stock of the Day: NWY

While managing other people’s money in the 1990s, my own best strategy for coining money for clients was momentum investing (the trend is your friend).

AAII’s Driehaus stock-selection strategy is named for one of the legendary momentum investors, Richard Driehaus—once named by Barron’s as among the 25 fund managers on the Barron’s All Century Team.

Through May 31, the AAII-Driehaus strategy for selecting stocks for investment returned 23.2% for the year to date, 18.6% for the last 10 years, 18.6% for the last 5 years, 21.2% for the last 5 years.  

NWY (New York & Company) is at the top of the list of stocks passing the Driehaus criteria. NWY is a retailer of women’s wear and accessories with 519 stores in 43 states.

My 5-year Yahoo chart shows a sideways pattern since the fourth quarter of 2008, with occasionally dramatic pullbacks first followed by short-term recoveries and next by short-lived uptrends—not what the faint of heart investor hopes to see.

My 3-month chart suggests an opportunity for a bold, active investor to ride NWY’s long-term up trend by acquiring the stock as it’s rising from the 2013 spring market pullback.

A consensus of Yahoo’s stock analysts rate NWY as a strong buy. I think it might interest an exceedingly patient buy-and-hold investor.

Never forget this: All investments and savings are gambles on the unknowable future and thus subject to loss.

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