A.G. Kicks Abercrombie While It’s Down

Despite today’s downgrade from “buy” to “hold” by A.G. Edwards (point “B”), I still view the recent weakness in shares of Abercrombie and Fitch (ANF) as an excellent entry point for investors. As you can see from the chart below, A.G. has hardly been adept at calling the direction of ANF stock. They put the “buy” recommendation on it in June 2005 (point “A”) and within weeks the shares began a freefall from over $70 to under $45 in less than two months. If I’m right that Abercrombie will rebound later this year, this will be just another example of analysts urging clients to buy high and sell low.