Joseph A. Bank (JOSB)

We hate their commercials. They are ubiquitous and annoying. But they’re effective.

The company is highly promotional. For a long time we couldn’t figure out how they could make money by giving you a suit, a pair of pants and 12 shirts for free if you buy a pair of socks, but we’ve given up wondering. They are tremendously successful.

We know. We’ve spent a lot of time telling you to buy big cap stocks. And this stock has not made a lot of growth screens. But they bumped up EPS by 42% last quarter after beating by 14c. They are projected to increase EPS only 10% this quarter, but analysts routinely underestimate their quarters.

Very quietly the stock gained 65% during one three month period earlier this year. It has now spent 7 weeks consolidating its gains and has formed a double bottom base from which it has just started to rise. This can be a difficult stock to buy or hold using our usual methods. So we’re going to recommend entry here, just above last week’s high, using last week’s low as the stop.