I have been following True Religion Apparel (TRLG) for a long time and continue to see it as "the diamond in the rough". I wasn't the least bit surprised when they beat their Q4 estimates for 08 (see conference call transcript). I was, however, disappointed in the way the market traded the stock thereafter. It is clear upon glancing at their financial statements to date that TRLG has outstanding short-term liquidity, solvency and overall they display a true financial health for a going concern in its growth state.

Given the recent and current economic conditions, I don't think that the stock should have been beaten up as badly as it was as a result of their announcement that they are likely to come in below estimates for Q1 09. It's not like they are suddenly saying that they are going to be recording a loss for Q1 09 (as many companies have been), but rather that they are going to be slightly less profitable than previously forecasted (but still earning a substantial profit!).

Designer brands have long been a significant part of our economy. A recent company that has emerged and proven to be performing well is True Religion (TRLG). They have entered into a niche market that can be highly profitable, if able survive. So far, they have been focusing on producing designer jeans and some other garments such as shirts and sweatshirts. It seems as though you cannot walk anywhere without seeing their tremendously established horseshoe stitch. The price of these jeans defiantly remind you that you are purchasing designer jeans and not just any ordinary denim. Thus far, their jeans have acted like that of a Giffen good in that more and more jeans have been purchased despite high prices.

Year to date, the company has been up around 18.4%, which is great in the current economic environment. The P/E ratio is defiantly on the higher end, signaling that many investors have high hopes for the company in the future and are willing to pay a premium for their earnings.Their forward P/E ratio is much less than the industry's, all awhile their growth is only slightly lower indicating a good buy. With sales growth estimates as well as earnings estimates being extremely high, this defiantly is a long position in my portfolio.