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American Apparel, Inc. Message Board

  • dogrna_blade dogrna_blade Sep 6, 2013 12:59 PM Flag

    This POS still stuck in dogma world?

     

    Looks like it!

    This topic is deleted.
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    • Irish idjut has finally said the right thing.

      The way the stock is moving is perfect for the next trade.

      Last year going into the third quarter was the perfect time to short as the change in the value of the options was going to make the bottom line look worse than it was.

      After the drop was the perfect time to go long as the drop in the stock price lowered the value of the options so much that their drop in value made the fourth quarter look profitable. Bye the way idjut, the purchase at .90 worked out fine at the end of last year.

      After the run up it was time to get out of the stock as the change in value of the options combined with the slowest quarter of the year would mean that the first quarter numbers would not sustain the higher price.

      The early repayment of debt charge in the second quarter meant that the bottom line was not going to look that good, the added expense of the distribution changes just added to the pain.

      If the stock stays below 1.42 at the end of September there will be over 11 million dollar added to the bottom line in the third quarter. For every .05 lower that the stock is there will be an additional 1 million dollars added to the bottom line.this should allow the company to post a profit for the third quarter..

      Going from a loss to a profit should cause the stock to rise after the third quarter numbers are reported.If the stock rises during the fourth quarter then the company will not get the 11 million dollar benefit to the bottom line it received last year and would have trouble showing a profit for the fourth quarter. If the company is able to show real profitability and positive cash flow in the fourth quarter the stock might hold up, but I wouldn't count on it.

      Buy near the end of September if the stock is still down and sss are still growing, hold for a rise on the third quarter numbers, take a profit and come back in the second quarter next year if sales keep rising.

      Unlike the village idjut, my simple call in advance.

 
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