kevinleehsu's  Instablog

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Interests: Financial Modeling, Design and Film
  • American Apparel Analysis 0 comments
    Jul 16, 2014 8:06 PM | about stocks: CQ
    • 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
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