Pendulum’s Thesis on American Apparel


Yesterday, Seeking Alpha contributor Pendulum published a bullish article about American Apparel ($APP).  You can read the article here.  The article agrees with and expands upon our bullish thesis for $APP, citing same store sales growth potential as well as the potential for growth by opening additional stores.

The author says he first heard about the company by reading our blog posts about $APP, including our most recent post that disputes Josh Arnold’s bearish thesis.

It seems the company is getting quite a lot of attention from investors lately, and we are happy to see this. We would like to point out though that consumer spending headwinds have been faced by companies such as Crocs ($CROX), Coach ($COH), Deckers ($DECK), and a few others lately. Although $APP is not immune to these type of macro economic issues, our long term thesis is unchanged.  We believe the company has strengthened its balance sheet to be able to withstand a few bumps on the road.

We encourage you to research and come up with your own decision.

Are you in the bullish or the bearish camp?

Written by Jennifer Galperin.  Follow me on Twitter and StockTwits.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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