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$25.91 1.75 (7.24%)
10/10/2008 4:02 PM

Aeropostale, Inc. (ARO)

CAPS Rating:
**

The Company is a mall-based specialty retailer of casual apparel and accessories. The Company designs, markets and sells its own brand of merchandise principally targeting 11 to 18 year-old young women and young men.

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Avatar AresFinancial (99.59) Submitted: 6/27/08 11:50 AM : Underperform Start Price: $22.25 ARO Score: -49.75

Everyday this company stays above a single digit, the CAPS god kill a kitten.

1. The US is in a Recession. It may be very severe and long.
2. The last thing Americans need is more clothes.
3. Specialty retailer that Competes with WalMart, Costo, Sams and Old Navy
4. No moat
5. A Mall retailer in a high rent space
6. Eddie Buaer, Lands End, The Gap, Guess, Amenercombie and Finch, Old Navy, etc.,etc. NO MAS!
7. Up 40% off its 52 week low!
8. High short interest, that is increasing: http://shortsqueeze.com/?symbol=aro&submit=Short+Quote%99
9. ARO has double the P/E of closest competitor: AEO: http://finance.yahoo.com/q/co?s=ARO
10. ARO is Outperforming the S&P? No sustainable reason that I can see...
11. Obama's Capitial gains taxes should bring down the whole market.
12. THE MAIN REASON: NET Insider Selling: $902,247,468
http://www.secform4.com/insider-trading/1168213.htm

Does this company make money retailing clothes? Or unloading stock on Fools?

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Avatar EnigmaDude (32.15) Submitted: 9/14/08 1:11 PM

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wrong on several counts - why? Because kids love this store! And even us parents like it. My 12-yr old daughter makes me go there and every time we go the store is packed! I even find some deals on clothes there that I like.

The "last thing Americans need"? People will always need clothes! Do you think Recession = Nudism?

Also, they have no debt, earnings have increased for each of the past 6 quarters, and sales increased again last quarter despite other retailers losing money. We also went to Dillards and they had sales of 75% off their high-end clothing lines. You are right about Gap, Dillards, and maybe some of the others. But people will always need clothes, and teens need to impress each other.

Other stores that are doing well include The Buckle, and Urban Outfitters. All IBD 100 top picks.

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