I have just discovered a new stock, PSS, which is the stock of Collective Brands, a company with an ugly website essentially selling shoes and apparel. Once you get over the hideous website, and look at their numbers, you can see that this is actually a good business. They have an EPS of $1.52 and they’re trading at 8.24 times EPS (the stock closed at $12.51).

The company seems in a steady downward trend, with small peaks after every major down movement. The pattern is very easy to spot, and I’d probably wait till Monday to buy the stock, if it doesn’t bounce back tomorrow (it was down 9% today).

PSS is very bearish short, medium, and long term, and has an RSI of 33.44.

The stock is so disconnected from the company, which did well in the last quarter, but failed to meet the estimates of 45 cents EPS.

There were no insider sells after May, which means that executives at this company believe that the stock is undervalued. The last insider sell was at $22.38/share. Debt is decreasing every year.

The longer I dig, the longer I feel that this is a bargain stock for a long position (but obviously the stock’s movement this year does not reflect my feeling), and if you’re in for a short trade, then buying tomorrow (if the stock moves down again) would be a good move. Just buy a few hundred shares or so, sell it back the next day or the day after.