If you don't have confidence in Mike Jeffries to run the company, you should probably not own the stock.
re you longs actually impressed with the latest management decision?
Not really. It's a struggling company.
Basically, this company has always been Jeffries. If you don't have confidence in his ability to run the company, you probably shouldn't own the stock.
I base my price target of 18 to 19 dollars per share on past performance, reasonable PE in the low 20's (not 70-80) for this sector,
A bit optimistic. This stock has a significant downside.
Actually, I think the remarks complained of had been made long before. 2012 was just when some bearish guy chose to make an issue of them.
There was absolutely no support for the outrageous price targets on ANF that were all the way up to $60.00 a share
that's probably why it wasn't selling for 60 dollars a share.
This type of junk bond market, where bonds START OUT as junk would not be possible if the markets were in a natural state.
Sure they would. Investments, like tooth pastes, are created to suit the interests and needs of customers and producers. Junk Bonds have certain qualities that make them attractive to create, sell and buy. For issuing companies,. they are a way of raising cash, without dilution of control. For purchasers, they are away of trading away some security for the prospect of greater returns.
Has Jeffries a selling plan? If he does is he violating it? If Jeffries is selling according to a pre existing plan, what do his daily transactions tell us, if anything?
I remember when folks were complaining about rising oil prices. Apparently oil prices can't do anything right. The claim on this board has been that we are in the midst of inflation. What's the significance of that with respect to oil prices? Should oil prices be falling faster? Are they being propped up by inflationary pressure in the economy?
What makes this different are two things. irst, many bonds aren't issued as Junk, they ger downgraded to there
Sure, but many are. as you note. In any event, as I understand it, junk bonds are more like stocks in that they are inadequately secured investments. As with stocks, the fact that they are insecure doesn't make them bad investments, although what made them insecure might be a reason they are bad investments.
How are junk bonds doing? Junk bonds have more of the characteristics of stocks than bonds. Stocks are unsecured investments. Junk bonds are inadequately secured investments. So logic dictates that junk bonds should act more like the stock market, particularly with respect to dividend paying stocks.
Are they? Do they?
The problem is that kids age in and age out of the demographic. You kids will soon grow out of Abercrombie and the company will have to find a way to replace them with new customers.
You know, George Bush nearly destroyed the economy, and the Republicans want to reinstate his policies, possibly to finish the job. And yet people don't seem to care. The market has been rallying largely since the Republicans left office, and yet we are told Obama is bad for business, and they are winning support if not the argument. That being the case, I don't think a short term rally will have much impact.
On TV this morning, admittedly not on one of the financial channels, I heard a commentator suggest that the market was up in anticipation of a Republicans victory tomorrow. It shows an interesting contrast between what people think they know, and what is in fact true. People think Republicans are good for business because Republicans tell them that a lot. But the fact is stocks do better under Democratic presidents than Republican presidents.
CNBC is a constant commercial pumping the stock that Cramer owns and companies and brokers that sponsor the show.
Probably why no one watches it.