Aeropostale (ARO) upgraded and bottomed

Discussion in 'Stocks' started by Hyudra, Oct 18, 2005.

  1. Hyudra


    Aero has taken a huge hit recently due to the more challenging retail sector. Some key notes to consider:

    1. ARO hit a high of $35 and has come down to $18.
    - this stock was $18 back in 2004 with lower earnings.
    2. ARO had to revise earnings lower by a few pennies.
    3. Prudential downgraded the company.
    4. Yesterday 10/17... 2 upgrades in the premarket by Citigroup and Brean Murray.
    5. The company is extremely oversold.
    6. S&P500 retail index might be in the beginning stages of a reversal due to Friday's upbeat note on the retail sector.
    7. Dow Jones retail index could also turn around as well.

    Using fibonacci retracement.. 38%, the stock should come back to $25.

    ARO's market cap is approx 1 billon and currently has revenues of 1 billion. Net profit was 320 million in 2004.

    Like they say, buy low on fear (now), and sell high later.

    GL, and this is my first post :)
  2. dude ... hope you make alot of money ...

    me ... I won't touch this stock

    I remember a few yrs ago it trading under $10

  3. Hyudra


    i hope i make a ton of money too.