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Non-Tech : American Eagle Outfitters

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To: Ron Kline who wrote (260)7/9/1999 2:28:00 PM
From: Alan Villalon  Read Replies (1) of 325
 
I was just scanning AEOS headlines and noticed the following

Same store increases for the past 3 months:

April +16.9%
May +18.7%
June +26.3%


I was looking to buy on a pullback if there were disappointing same store sales but missed such an opportunity. The stock market looks to be trending sideways while the economy seems to remain healthy. With the upcoming back to school season coming and the new Dawson's season, we could see a swell in earnings. I am taking the chance now to accumulate while watching the dips for more buying.

My last post about the insiders selling get me a little worried too. I thought for a while but the Schottensteins have seen their holdings increase 800%. So why not cash out some and enjoy a little bit.

It worried me to see insiders selling but if I had that much at stake I would sell some. Let's see:

According to the article they still have 20M shares - a 40% stake
They previously had a 60% stake so the math is (20/40 = x/60)
x = 30M shares

So, they sold 10M shares at say $45. That's $450M (which was only $56M two years ago). So, locking in close to half a billion is a wise move in my eyes.

I only hope there is more room to grow. The growth potential is there considering they are not in every major market. I am going long and hoping to see that I too can enjoy a 800% return!
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