Comments on: Trading Aeropostale http://www.peridotcapitalist.com/2005/05/trading-aeropostale.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sun, 05 Feb 2012 15:45:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chad Brand http://www.peridotcapitalist.com/2005/05/trading-aeropostale.html/comment-page-1#comment-70 Chad Brand Thu, 02 Jun 2005 20:08:00 +0000 http://www.peridotcapitalist.com/?p=87#comment-70 It's all about expectations with these stocks. Investors had hit them pretty hard as talks of a denim glut made their way across trading desks in recent weeks. We have gotten the 10% pop that I expected out of the ARO trade, thanks to today's trading. <br/><br/>URBN has been very hot as of late, but investors who are fearful of the high multiple should still stay the course. Such a high P/E does make it vulnerable to short-term hiccups of several points, but long term this company has just begun to tap its growth potential.<br/><br/>In sum, trim the ARO and hold onto the URBN. It’s all about expectations with these stocks. Investors had hit them pretty hard as talks of a denim glut made their way across trading desks in recent weeks. We have gotten the 10% pop that I expected out of the ARO trade, thanks to today’s trading.

URBN has been very hot as of late, but investors who are fearful of the high multiple should still stay the course. Such a high P/E does make it vulnerable to short-term hiccups of several points, but long term this company has just begun to tap its growth potential.

In sum, trim the ARO and hold onto the URBN.

]]> By: Anonymous http://www.peridotcapitalist.com/2005/05/trading-aeropostale.html/comment-page-1#comment-69 Anonymous Thu, 02 Jun 2005 19:58:00 +0000 http://www.peridotcapitalist.com/?p=87#comment-69 ARO reports a second straight decline in year-to-year monthly sales and you finally get your first big jump, Chad -- though I must say, URBN has been equally ridiculous today (along with others in teen retail). ARO reports a second straight decline in year-to-year monthly sales and you finally get your first big jump, Chad — though I must say, URBN has been equally ridiculous today (along with others in teen retail).

]]> By: Chad Brand http://www.peridotcapitalist.com/2005/05/trading-aeropostale.html/comment-page-1#comment-51 Chad Brand Mon, 09 May 2005 18:08:00 +0000 http://www.peridotcapitalist.com/?p=87#comment-51 No doubt one of the worst marketing ideas I've ever seen. The concept of "target market" is one of the very first topics in an introductory marketing class. When I saw CompUSA sponsor the Kentucky Derby pre-race coverage on ESPN, I thought they must have gotten an advertising company reference from ARO. No doubt one of the worst marketing ideas I’ve ever seen. The concept of “target market” is one of the very first topics in an introductory marketing class. When I saw CompUSA sponsor the Kentucky Derby pre-race coverage on ESPN, I thought they must have gotten an advertising company reference from ARO.

]]> By: DBD Press Room http://www.peridotcapitalist.com/2005/05/trading-aeropostale.html/comment-page-1#comment-50 DBD Press Room Mon, 09 May 2005 16:40:00 +0000 http://www.peridotcapitalist.com/?p=87#comment-50 This success for Aeropostale has to be in direct correlation to their huge marketing push during the NCAA conference tourney week. Adolescent girls are the top viewing audience for the Big East and MVC conference tourneys. Just look how the stock shot up from mid-February to early march. The adolescent girls were probably buying up shares and therefore had little disposable income to buy actual clothes at ARO...that explains the weaker sales numbers. This success for Aeropostale has to be in direct correlation to their huge marketing push during the NCAA conference tourney week. Adolescent girls are the top viewing audience for the Big East and MVC conference tourneys. Just look how the stock shot up from mid-February to early march. The adolescent girls were probably buying up shares and therefore had little disposable income to buy actual clothes at ARO…that explains the weaker sales numbers.

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