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American Apparel Analysis

  • Let's keep this short.
  • Consider the hipster retail sector mogul American Apparel. With a beta value of nearly double the sector average, this stock can make you a lot or a little money. This is easily seen when significant economic or political news hits the mainstream. A positive or inverse relationship will be seen (mathematically), normally being a strong indicator of future projections.
  • Current news surrounding the company include the recent firing of CEO Dov Charney, the inverse relationship to Janet Yellen's Speech, as well as the volatility factor in holding (NYSE:APP). Here's the catch. Dov Charney has publicly announced he will be fighting the "sudden and without cause" firing. APP has increased and stayed that way after Janet Yellen's speech.
  • We shouldn't forget that on Dec. 14th 2007 APP was $15.02
  • What happened? -- Company scandal, internal mismanagement and many controversial factors tanked APP.
  • This stock is garbage. I love the garments they make, but the Price to Sales multiple is .32 compared to the industry 3.26. Combine that with the Return on Assets metric of -19.82 versus the industry average of 13.06. That's a negative number versus a positive number, just in case the font is too small.
  • APP is a no-buy.
Stocks: CQ