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Non-Tech : American Eagle Outfitters

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To: Platter who wrote (291)	2/21/2000 6:55:00 PM
From: Rob S.	Read Replies (1) of 325

AEOS came up in my chart scan for extreme oversold conditions. The TA had deteriorated along with that of the sector since late last January but has now reached an extreme oversold condition (or is that hyper extreme?). Most indicators are pegged sharply. IMO a rebound from this level is very likely this week. Looking into it further, it looks like the analyst community is in agreement: AEOS improved to an overall 1.63 rating as one analyst changed from hold to buy. There is still one analyst listed with a sell rating but all others are now listed as buys or strong buys. Here are some links for financial reports and ratings: dailystocks.com quicken.excite.com stockmaster.com dailystocks.net Looking a bit further, I called the company to get my own confirmation that something wasn't screwed up. They thought the stock was down because of problems at Aberzombie and Fitch and WallMart which had warned of lower sales growth and increased expenses. Interest rate concerns were also thought to have helped move the stock down. The company responded to those concerns by saying that they have $170 million in cash which is more than adequate to fund aggressive expansion during 2000 and continue operations. They expect to finish the year with at least $70 million left over. Sales remain very strong and expansion plans are moving forward. Since the company is still in an expansion mode, faltering sales are not seen as a factor as with maxed out retailers such as Wallmart. Overall, the mood was anything but negative on the future, in fact very enthusiastic. I think this one is a great buy from both a short-term oversold trading perspective and as a longer term investment. interest rate fears are likely to continue and will dampen the outlook for the overall retail sector as compared to the recent past, but AEOS is also a very exciting growth story and doesn't depend so much on the stage of economic expansion for vitality. Buy this thing before it rebounds. Beyond a nice 33% rebound, the outlook may be hemmed in by continued sector woes.

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