(BAMM) - Books-A-Million it looks as if BAMM will move higher yet

Background Books-A-Million, Inc. is a leading book retailer and is one of the dominant book retailers in the southeastern United States. All stores offer an extensive selection of best sellers and other hardcover and paperback books, magazines, newspapers, cards and gifts. In addition to the retail store formats, the company offers its products over the Internet at Booksamillion.com and Joemuggs.com. The company is also a wholesaler of books to, among others, bookstores, wholesale clubs, supermarkets, department stores and mass merchandisers. Full Analysis Books-A-Million continues to be on fire. Already up 95% for the year to date, BAMM stock set a record high close on Wednesday. The company's dynamic price action is fueled by positive earnings surprises. Most recently, the company reported EPS of 15 cents on Aug 17, up from 10 cents per share in the same quarter last year. The August number was a positive 36% surprise over analysts' consensus estimates. That should come as no surprise, since BAMM has a history of meeting or exceeding analysts' consensus estimates. The company has done so in 12 of the last 13 quarters. Sales grew 12.7% to $121.2 million while income was a healthy $2.49 million compared to last year's loss of $0.9 million. Technical Analysis Looking at a BAMM chart, it looks as if the stock has enough momentum to move higher yet. With Wednesday's new high, the stock took out the only overhead resistance at $18.78, set on Jun 27, 2006. The only cautionary note was that Wednesday's new high did not come with the heavy volume that Momentum traders look for so closely. Given the company's ability to produce positive earnings surprises, no overhead resistance and a generally favorable general market bias, it looks as if BAMM will move higher yet. Momentum traders need to be aware of any false breakouts, such as a new high that reverses quickly, especially since BAMM did not produce heavy volume on its latest move up. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home