Jeremy Raper
Long/short equity, deep value, special situations, growth at reasonable price

Aeropostale: Why It's A High-Conviction Short All The Way Down

Readers of my other articles on retail names like Elizabeth Arden or Vera Bradley will know that in searching for profits in the space, I much prefer to jump on existing trends and ride them (up or down), rather than trying to pick the 'next big thing' in fashion. Aeropostale (NYSE:ARO), the New York-based teen retailer, makes an interesting case study in this regard. As the teen retail market has been upended by the entrance of 'fast fashion' powerhouses like H&M, Zara, Uniqlo and Forever 21, ARO stock crumbled from $15 a share to current levels around $3.2 - all just in the last year! But while some may argue risk/reward now favors a long position, as...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details