Not only does the holiday season sometimes represent well over 40% of any retailer’s sales, it’s also predicted that there will be a 10% increase in year-over-year sales. This alone is a reason why you may want to go on AMZN stock throughout Q4 of 2011.
And Amazon isn’t just an online retailer. Many people know about the Kindle product line but might not be aware that Amazon has branched out into content ownership and distribution as well. While Apple is dependent on its next killer product (potentially AppleTV), Amazon is preparing its own service with major content to be provided through Warner Bros. and MGM as well as its own content. This content comes from its own popular books which can then turned into movies. These could potentially be distributed into the mainstream no differently than Hollywood’s traditional movies.
Can you imagine if Amazon suddenly had a stellar franchise no different than Summit bringing out the Twilight series?
And as you look at the chart below, you can see you that Amazon is trading on a lower Bollinger range which represents a near-term buying opportunity.
This can be seen in the lower band ranges of the relative strength indicator as well as the lower Bollinger band as well.
One other strong indicator that tells me many people should consider owning Amazon is the number of analysts pronouncing Amazon a strong buy — over 22 of them at present. Maybe you should too?NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!