American Eagle Outfitters (AEO) has hit a 52-week low. American Eagle is a retailer whose colleagues include Abercrombie & Fitch Co. (ANF) and The Gap Inc. (GPS), and it is down well over 3% to $12.15 as I write this during the afternoon trading session. That share price is significant, because the 52-week low on the stock is $12.15 (so far), and the low was made today.
As we all know, 52-week lows are interesting because they could signal that it's time to buy. They're risky, though, because you don't want to be catching falling knives. You have to figure out what's been driving the decline and why you might want to suddenly become a contrarian on the thesis.
Abercrombie & Fitch (ANF), a fashion chain that competes for the attention of the mall shopper with American Eagle Outfitters (AEO) and Gap (GPS), is selling off in afternoon trading while I write this. My screen showed the shares down $1.72, or 4.2%, to $39.06. Volume, however, wasn't too bad with roughly a few hours to go before the close of the trading session; it was below the norm, but I do expect it to be above average by the time all is said and done. The company reported Q1 stats today, and that is obviously what's driving the bearish sentiment, in part at least.
As can be seen from the one-year chart, the stock has sailed some choppy seas over the last several months. After hitting a 52-week high of over $50, the shares started to slide. Some of that weakness can be attributed to what's happening in the market vis-a-vis the Greece situation.
This morning, AEO opened at $18.08. So far today the stock has hit a high of $18.15 and a low of $17.38. As of 11:35, AEO is trading at $17.59, down $1.05 (-5.6%). The chart for AEO looks neutral and S&P gives AEO a neutral 3 STARS (out of 5) hold ranking.
Most of this past week the stock market was erratic. News from Asian and American Markets was generally positive, sending the indexes higher, until unsettling news from the European Union let the air out of the tires, resulting in 100 point swings of the Dow Jones Industrial Average, which ended Friday up about 50 points for the week at 10,850.36.
Each day started upbeat and then we would hear about Greek debt, bonds coming due, Germany pushing for IMF participation in any plan to help Greece. Finally when this looked to be settled, we then got news of economic turmoil in Portugal. This activity stimulated me to write the following recent commentary:
American Eagle Outfitters (AEO), whose colleagues include Abercrombie & Fitch (ANF) and Gap (GPS), responded well to the company's fourth-quarter report. Adjusted income was 33 cents per diluted share. A year ago, only 19 cents per diluted share was generated. Oddly enough, 33 cents was the analyst's call.
I'm characterizing this as odd because I guess I was expecting to see a big beat on the bottom line after observing the strong rally in the stock. At the time of this writing, shares of the retailer were trading higher by over 6%, with tons of volume backing the bid.
Abercrombie & Fitch (ANF), whose mall colleagues include American Eagle Outfitters (AEO) and Gap (GPS), closed over 4% higher on Tuesday on active volume. The market liked the fourth quarter numbers. I did not.
Let's see. Total sales were down 5%. Same-store sales skidded 13%. Total company domestic sales contracted 12%. And net income came in at 91 cents per share, adjusted. This compared unfavorably to the $1.06 per share made in the year-ago period.
The holiday shopping season is the last chance retailers get to pump up their financial statements before the close of their fiscal year, which usually comes at the end of January. For some retailers, up to 40% of their revenue comes in the weeks heading into Christmas.
Is it time to take a bite out of Apple, Inc (AAPL) or leave it on the vine? After reviewing the current list by examining the stock yields and price-to-cash flow (P/CF) we will take a look at Apple for 2010.
Yesterday I dropped two stocks, but the list is still too long. In the coming weeks there will be more cuts and if I find anything of more value perhaps there will be something new.
Today it's time to do some trimming of the fourteen stocks and four options on the contenders list. This review will prioritize the companies by price-to-book (P/B), price-to-sales (P/S) and return-on-equity (ROE). This does not preclude more possible stocks being added and the final list will not be done until the end of the month.
We will also compare recent stock prices to three-year highs to give us a relative idea where the stock floated in rosier times.
Aeropostale (ARO), a mall business whose related stocks include Gap (GPS) and American Eagle Outfitters (AEO), closed up over 4% at the end of Monday's trading session. The catalyst? According to the corporate press release, management has decided to allocate an additional $250 million to its share buyback program.
This is very interesting news because the big question on every investor's mind has to do with the current holiday season. How well will retailers fare during Christmas? Or, more accurately, will Christmas be as bad as everyone thinks it will be?
Back in August, I discussed my amazement at Abercrombie & Fitch (ANF). The stock just didn't seem to be acting in a manner which reflected the fundamentals of the business it represents. Well, my bout of amazement continues, because shares of the retailer are up 9% as of this writing on the latest earnings report. One that didn't impress me.
For the third quarter, Abercrombie made, on a reported basis, 44 cents per diluted share compared to 72 cents per diluted share in the year-ago period. After adjustments, earnings came in at 30 cents per share. Okay, that profit drop is bad enough, but wait till I get to the really bad stuff. Which would be revenues. Total sales declined 15%, but same-store sales were even worse: they plunged off the proverbial cliff, falling 22%.
There are only seven weeks left in the year, so it is time to start thinking about 2010. If you have been keeping up with my 2009 picks (see: Chasing Value: 2009 blazing picks -- Q3 review ) than you would be aware that the group is up 40% through the third quarter.
This year I bought all of my picks so that I would be riding in the same ship as anyone that might have considered my suggestions.
I will be breaking up my potential picks into three categories; contender, on the fence, and out of the running, until I finalize the list in the last week of the year.
The market continues to befuddle the bears as the third quarter earnings and stock prices continued to move in a positive direction.
During this period Washington has taken charge of the auto industry and helped prop it up with the "cash-for-clunkers" program. They continue to subsidize the real estate market with first-time home buyers incentives, and very low interest rates. The banks are being refueled by the Federal Reserve with interest rates as low as zero, while all the time currency stability has been sacrificed. This has driven gold prices to new highs.
This is the third review of my 2009 stock picks through September 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). This years picks have annihilated index comparisons, so much so that I must attribute some of my good fortune to luck. However, I do believe the original reasoning was sound and the outlier nature of the gains certainly a result of an oversold market living in fear.
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American Eagle Outfitters (AEO) has hit a 52-week low. American Eagle is a retailer whose colleagues include Abercrombie & Fitch Co. (ANF) and The Gap Inc. (GPS), and it is down well over 3% to $12.15 as I write this during the afternoon trading session. That share price is significant, because the 52-week low on the stock is $12.15 (so far), and the low was made today.
Abercrombie & Fitch (
Most of this past week the stock market was erratic. News from Asian and American Markets was generally positive, sending the indexes higher, until unsettling news from the European Union let the air out of the tires, resulting in 100 point swings of the Dow Jones Industrial Average, which ended Friday up about 50 points for the week at 10,850.36.
This week, the world's top retailers will tell investors how the much-discussed 
Is it time to take a bite out of Apple, Inc (
Today it's time to do some trimming of the fourteen stocks and four options on the contenders list. This review will prioritize the companies by price-to-book (P/B), price-to-sales (P/S) and return-on-equity (ROE). This does not preclude more possible stocks being added and the final list will not be done until the end of the month.
Aeropostale (
Back in August, 
There are only seven weeks left in the year, so it is time to start thinking about 2010. If you have been keeping up with my 2009 picks (see: 
The market continues to befuddle the bears as the third quarter earnings and stock prices continued to move in a positive direction. 
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