Remember Xerox (XRX)?
Back in the day, Xerox was so ingrained in our everyday lives, we used it as a verb.
I’ll be back. I have to go Xerox a few copies…
It was no different than how we use “Google”.
And XRX stock was unassailable. It was AAPL before Apple. Check out this chart of Xerox in the 1990s:
That’s a $25 to $160 move. It looks like a tech stock.
And everybody loved it. The company would be on top forever and the stock would never go down.
Until…
XRX looked like a tech stock and, in the Dot Com Crash, it cratered like one.
It never really recovered and everyone forgot about it for decades.
But, crazily, it’s coming back around.
In fact, XRX is in the #1 sector in the world right now (Computer Peripherals).
Here’s the chart:
It’s moved above its long-term moving average and has formed a sideways base.
A break above $17.20 could lead to a big, nostalgic move up.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
