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Non-Tech : American Eagle Outfitters

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To: Ron Kline who wrote (257)6/24/1999 9:52:00 AM
From: Alan Villalon  Read Replies (1) of 325
 
I just started looking around the retail sector and noticed AEOS and FOSL (Fossil Watches). I came across them a couple of months ago but didn't have any playing money. The FOSL board was also dead and the stock has moved from $27 to $46 in 2 months. Take a look at FOSL and you'll see that it has little debt and trading at a low PE (forward looking PE is around 22 while the company is estimated to grow 39%).

AEOS also looks very attractive. Even though the last announcement about "Dawson's Creek" was not that special for all us old farts, I think it is a big thing for AEOS. Ihave to admit that I watched the show for time to time. I saw in several entertainment magazines about the show and how it was hot amongst 18-25 year olds. Trying to catch the next fad and stay young, I watched.

All the clothes styles on Dawson's Creek is what you see in the GAP, Abercrombie & Fitch & J. Crew. The show uses mature language (it uses words that I haven't even used in my life yet) which appeals to the teens and young adults as try themselves to act mature and mimick the characters on the show. The clothes are hip and the show deals with every teenage and young adult problem (not like what color porsche should I buy on 90210).

Anyway, my point is that we can see a surge in sales when the show really begins to take off. The show is in its 3rd season and continues to grow stronger. It had no problem taking on 90210 on Wednesday nights and it comes on (at least on the East Coast) before Fox's Party of Five.

I have also noticed that my younger brother and sisters in law have been buying clothes that match up to AEOS. In Pittsburgh (AEOS Headquarters), they have a big store one of the largest malls in the area. I bought a sweater vest there and the store was jamming. Tons of people and hip music (your GAP duplicate!). However, the second largest mall in Pittburgh, did not have as much floor space but there was still a small line at the register when I went there.

As AEOS expands more (esp. in CA), we will see this company begin to hit full stride. I am looking to free up some money shortly to get on board. Go AEOS!
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