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...

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