Hancock Fabrics Is a Speculative Buy

Hancock Fabrics (HKF), a specialty retailer offering sewing machines, sewing supplies and fabrics in over 400 stores, is on a prolonged downside. But this cyclical stock could be a speculative buy. If it finds support around $2.25 and forms a double bottom, HKF could move to the price upside to begin its fourth major price cycle since 1988.

However, be cautious with HKF because it could decline further. Invest only money that you could afford to lose.

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Double Bottom is a Bullish Pattern
Low-Price Stocks Can Be Extremely Volatile
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Posted October 14, 2006.