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Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher.  We recommend that stop orders be placed at the time of purchase,  and once the position has moved profitable we recommend a stop be placed a minimum of 3/8th above the purchase price and moved higher as the position moves higher.  

Today's Comments:  The overall market finished yesterday moderately higher.  While the late day decline from the intra day highs was disappointing,  what was important was that the market was able to have a broad based day of gains.  From  a technical perspective it appears that the market is ready to stage a  rally,  regardless of the fundamental problems facing it.  The Bottom Line:  The market should move higher. 
 

Company:  General Nutrition Co.         Symbol: 'GNCI'    Closing Price: $11.00/share. 
YH: $41.25   YL: $9.00     EPS: $1.36     P/E: 8.0     Forecasted EPS: $1.60 
Dividend:  N/A     Yield:  N/A       Ex Dividend: N/A 
Price Target:  $14.94 & then $19.375       Downside Stop:  $9.375 
Options Recommendation: Unavailable. 

Company Description: This company franchises and operates a chain of specialty retail stores offering vitamins and other sports nutrition products. 

Recent News:  10/01  Morgan Stanley cuts General Nutrition to "Outperform" from a "Strong Buy" 

Our Analysis: The shares of 'GNCI' moved sharply higher yesterday and in the process they appear to have broken their recent downward trend.  They should continue to move higher and test $14.94/share,  a former upside resistance point established in mid September of this year.  If the shares close above that level then I expect them to continue to move higher and test $19.375/share,  the point from which they gapped lower in late August of this year.  I could not locate any news to account for this move higher,  which raises the possibility that there still might be news to be released that could justify this move. 

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