Continue reading Pacific Sunwear names new CEO

Pacific Sunwear names new CEO originally appeared on BloggingStocks on Thu, 18 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

Aeropostale (NYSE: ARO), a retailer whose colleagues include Abercrombie & Fitch (NYSE: ANF), Pacific Sunwear of California (NASDAQ: PSUN) and Gap (NYSE: GPS), issued its Q2 report on Thursday. The stock didn't do much after the numbers were made public despite reporting a very nice 21% increase in sales during Q2, and a whopping 63% jump in earnings per diluted share to 31 cents. Why such a blasé reaction? Well, the retailer was only able to match the expectations of Wall Street analysts, so that might offer some justification for the lack of a decisive bid.

I felt the same way after reading Aeropostale's earnings release as I did after perusing the stats behind GameStop's (NYSE: GME) recent quarter, thinking the company deserved at least a little excitement, especially when one considers that last year at this time, the mall chain saw a 4% contraction in same-store sales. Of course, there is one understandable difference between the GameStop situation and the Aeropostale scenario. GameStop's stock wasn't trading near a 52-week high, and Aeropostale's shares are. So, perhaps the market is perceiving that a lot of the good news is already priced in.

Aeropostale has done well this year. Its stock is up over 28%. Should that concern potential investors? Perhaps. After all, this is a mall retailer based on fashion and investors must consider that Aeropostale's current hot streak could cool. If that happens, the stock might end up retreating back to the lower end of its 52-week range. While there are any signs that such a retreat will happen, I only want to throw into the discussion the concept of fickleness among the youth.

If you really like Aeropostale and want to buy its stock, it might not be so bad to wait for a better price, in my opinion, to allow at least a little margin for error.

Disclosure: I don't own any company mentioned; positions can change at any time.

Aeropostale (ARO) sees excellent growth in Q2 -- could it last? originally appeared on BloggingStocks on Fri, 22 Aug 2008 09:07:00 EST. Please see our terms for use of feeds.

Wal-Mart, other retailers report better-than-expected same-store sales originally appeared on BloggingStocks on Thu, 06 Mar 2008 09:57:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Pacific Sunwear of California, Inc. (NASDAQ: PSUN) is the favorite speculation for 2007 from Richard Sparks, editor of Trend Maximizer. He notes, "The firm targets trendy young men and women with name-brand casual apparel (jeans, shorts, T-shirts, swimwear), shoes, and accessories through some 1,100 stores.

"Technically, the stock has performed well during the past few months. From its late-August base near $13, the stock has gained more than 50%, using its 40-day moving average as support, to now stand at a six-month high.

"Moreover, the stock leaped more than 7% in response to recent earnings news as some of the pessimistic sentiment unwound. The stock also benefited from the better-than-expected same-store sales numbers. I believe that the equity should continue to advance as more skeptical observers on the sidelines step in to buy.

"Meanwhile, the speculative options crowd is displaying pessimistic expectations and short interest rose slightly in November to a five-year high. Further, there is ample opportunity for a short-covering rally to push the stock higher.

"I view the pessimism on PSUN bullishly, given the stock's recent technical outperformance and improving fundamental picture. Evidence suggests that sideline money exists, which could step in and create buying power that could push the stock higher."

To see Richard's top conservative investment for 2007, click here.

Top Picks 2007: Pacific Sunwear shines for Sparks originally appeared on BloggingStocks on Mon, 25 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.