New kid on the block here -

Am I correct to say that WH Smith's chart is forming into a reverse head & shoulders?

I make the head 240, 1st shoulder @ 380, height 140. I make potential breakout at about 420 therefore a promising target of 560?????

Does anyone agree or should I keep working on those books?

There's an e-beer in it for all if I am correct.

Fell off a bit of a cliff a week later Graham. (Oh well - these things happen!)

And now: Sunday Tgraf 23/11:


"...We hear that WH Smith (332.25p) is experiencing difficulties with its new distribution system. The problems, which are mainly affecting the supply of CDs and DVDs to high street stores, could not have come at a worse time for the group as it gears up for the crucial Christmas trading season.

A spokeswoman insists that they are nothing more than "teething problems" and claims they are being ironed out quickly. But we fear the troubles may be more serious.

WH Smith is looking increasingly accident prone. Last week City analysts raised fears about whether its tills and IT systems could cope with a raft of "buy two, get one free" and "two for 20" offers after reports that customers were overcharged.

The mix-up followed the group's admission last month that it had "forgotten" it owned a building and would have to make a multi-million pound provision to clear up the mess.

With increasing competition from the supermarkets and specialist retailers such as HMV and Waterstone's, it is not surprising that the beleaguered chain is losing market share.

It will be months before there is any chance of Kate Swann, the newly appointed chief executive, getting to grips with the company, particularly as her predecessor, Richard Handover, has moved into the chairman's seat - a breach of corporate governance best practice.

We expect WH Smith to be a loser in the battle for high street customers this Christmas. Sell..."



My nearest branch seems to be losing out to the nearby branch of Borders - especially in CD/DVD sales. (I'm already short from 360p)

jzl

I've been in and out of WHS a couple of times. There's more to them than just high street DVD shops - strong cash flow and a nice wholesale business for a start - I'm out at the moment but I think there is a possibility that if Xmas is crap for them and the share price falls further they will be taken out by someone.
That said I would only pick them up at around 300p or lower when the yield then becomes worthwhile.