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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (23615)	3/29/2006 1:18:20 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78711

Grommit, about ANF. I sold my remaining shares around 2/8/05 at about $55. It's difficult for me to come to terms with ANF now as a possible bargain given that I previously concluded it was too risky for me to hold at $55. The stock increased and has now fallen back again to $55. ANF may well may be a bargain though. Especially, imo based on profit margins and roe and what you have to pay ($55) to get those numbers. However, ANF is a clothing retailer and a change in fashion might easily mean that a wrong guess by ANF's buying staff about youth fashions will decimate sales, profits, margins. OTOH,in ANF's worst year in the past decade, it managed 9.5% profit margins. (a good sign) I'm considering taking on a few shares tomorrow (Wed.), conflicted though I am with my opinion of exiting at my guess of full-value ($55)and now, about a year later, seeing the stock at $55 and calling it possibly undervalued. Perhaps at best it's a very speculative buy here, so only a few shares for me. I'll do more checking to see how Hollister stores are doing (a key aspect of my reason to buy ANF previously). ----------------------- I am holding shares in the following clothing companies: finance.yahoo.com (Cut back sharply on JNY after they announced they might be putting themselves up for sale. Okay, Estee Lauder isn't clothing, but I include it because it's something women put on their bodies before they go out of their houses. Message 21028555