Josh Arnold
Long/short equity

American Apparel: A Worthless Stock On Sale For $2

American Apparel (APP) is a vertically integrated apparel designer, manufacturer, distributor and retailer that offers clothing and accessories for the whole family. Primarily, the company relies on t-shirts, denim, jackets, accessories and sweaters for its revenue. In addition to its roughly 260 store retailer network in 20 countries across the world, the company boasts a significant online and distributor business whereby it sells its products through its e-commerce site directly to consumers and raw goods to distributors. The stock once traded for $15 prior to the financial crisis but subsequently cratered to less than a dollar. With shares rebounded to near $2 now, investors may be tempted by the perceived value of a once-$15 company selling for $2....

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