Josh Arnold
Long/short equity

Wet Seal: Turnaround Already Priced In, Downside Likely

The Wet Seal, Inc. (NASDAQ:WTSL) is a specialty retailer of apparel and accessories for female consumers. The company's namesake stores, Wet Seal, offer apparel and accessories for young women while its Arden B chain offers contemporary apparel and accessories for a slightly more mature demographic. In addition to the ~530 total stores the company operates it also sells its products through wetseal.com and ardenb.com. Over the past several years the stock has been extremely volatile. Nothing has changed in that regard as the last year has seen prices range from $2.63 to $5.20. Shares have settled recently at $4.37 and after the huge run up we saw in shares beginning this spring, investors must figure out if there...

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