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Non-Tech : Abercrombie and Fitch -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (283)	2/16/2000 9:24:00 PM
From: Adam Nash	Read Replies (1) \| Respond to of 335

Hey, no worries, it's not like I had my whole portfolio in ANF or anything. However, I think in this case, you are not dealing just with a stock that has dropped because the sector is out of favor. Here you have a stock that has dropped, largely because the information coming out of management has been late, untrustworthy, and insufficient. Investing is hard enough without dealing with management that either can not or does not want to disseminate information properly. If you think the other shoe has fallen, remember that the current negativity still assumes that ANF will provide excellent earnings growth going forward. However, what you see on the market is a big vote of no confidence in that prediction. Do not be surprised if next quarter ANF misses earnings, or perhaps the quarter after that. Management has demonstrated that they will not preannounce unless cornered, and that they do not believe anything is wrong. Obviously, something is wrong if they said they planned for 5-6% SSS and only saw 3%. The excuse that they ran out of inventory makes little sense if you believe they had planned for 5-6% SSS. Also note that they only made earnings based on enlarged margins and rising accounts receivable: two early warning signs of a company stretching to make the numbers. I agree, on paper, ANF looks like a bargain. However, that is because the risk is that the paper is telling a story of the past, not the future. I am probably going to sell my shares, but keep the May 25 calls (since they are worth next to nothing anyway), just in case there is some short term enthusiasm. I am not sure whether to put my $$$ into GPS, AEOS, or something more aggressive, like RBAK. Any thoughts appreciated. It would have been nice for this board to have been active before the announcement...