ARO. Re-entering this retailer of teen clothes. Positive article in Barron's encapsulates the value idea for me:
"Aeropostale tends to have lower prices for its goods than a number of its rivals. And its stock, trading at just 8.5 times next year's earnings, not far off its five-year historical low of 7.5 times, is cheaper than that of rivals like Abercrombie & Fitch (ANF) and American Eagle (AEO). .
The stock has outperformed its apparel retail peers for the last one-, two-, and five-year periods, and more than doubled year to date. Still, shares are off nearly 35% from their September high."
High roe (and, correspondingly, high price/bk) with no ltd.
As a pair trade, I'm intending to try again with a short of ANF next year, if ANF will rise again up closer to $40 on no positive news. |
