Yes, that is very apparent; I guess I'm not quite at Warren Buffett's level. (chuckles) I knew I couldn't swing volume and price direction of a mega-cap stock... but I guess not even the micro-caps either. Well, I've been right about a bunch of stocks (TEX, AEO, BWS and CTRP) over the last two years. If I keep being right in my predictions, maybe I will pick up a few more followers along the way.... and make a lot of money on SMDM in the process. :-)
Here's my post: http://seekingalpha.com/instablog/15986732-jonathan-loewer/2491941-smdm-a-profitable-micro-cap-growing-revenues-while-trading-at-just-5-times-trailing-earnings-and-30-of-trailing-revenue
Good Luck, Everybody!
Hey Hottie!!!... Been a long time. I remember you on the Sprint board and you bought a bunch of TRLG shares on my recommendation last year when we talked on this board about AEO and ANF. I hope you timed that well and made some nice $$$; I know True Religion popped and fell a few times before the buyout. Unfortunately, I was too slow (read: nervous) to buy Ceaser's on your recommendation... Should'a though!
Anyway, congrats on your AEO sell in the twenties last fall. I have been long AEO since 2011 (I trade around a core position, buying more as it falls into the low teens, selling most of my shares up into the twenties... rinse and repeat). If it does fall back to the $12 range I will load back up, as the company is still earning well more that its 12.5 cent per share dividend. So it's still adding cash while paying the divy just fine. The quarter was sub-par, and the era of big sales at clothing retailers continues, but I think AEO is still taking share from ANF and ARO, and will come out of this in the best position of the teen retailers.
Still enjoying that dividend another year later. I'm still bullish on AEO. I'm looking forward to the next earnings beat!
Ehhh (shrugs shoulders), it's the Galleria... kinda like The Woodlands Mall... or anywhere else in Texas for that matter. The cost of housing and the cost of living are so low that everybody can go shopping all the time or drive up and down I-45 and I-10 in their expensive toys.
That being said, I am bullish on AEO and am a longtime long the stock.
The Singing Machine just posted a one-cent profit ($324K). Net profit was down from last year's four cents ($1.435mil). Net sales for the quarter ended September 30, 2013 decreased to $10,834,570 from $14,376,086, a decrease of $3,541,516 as compared to the same period ended September 30, 2012. That decrease in profit and sales has sunk the stock almost 20% in today's trading. A few weeks ago, shares were trading in the 30-35 cent per share range, now they have dived back down to 23 cents per share.
However, I see this as an opportunity to buy, because this report only takes SMDM's trailing earnings from 9 cents to 6. The stock, currently trading at 23 cents per share, is only trading at 3.8 times trailing revenues even with this earnings miss included. Most importantly, the CEO said along with this earnings release that much of the business that would have come in Q2 will be carried over to Q3. The CEO stated "We anticipate these shipments to be rescheduled to the 3rd quarter, but as a result we lost a lot of top-line revenue which we traditionally report in the 2nd quarter." Likewise, the new product that they have on sale at Best Buy's website and are rolling out to Best Buys all over the country should add a huge pop to this tiny company's market cap.
DYODD, and good luck!
Also, this earnings beat coincides with bad news from Abercrombie & Fitch and Aeropostale. It shows that AEO is the best of the "A stocks". AEO continues to take market share from ANF and ARO. One last point, this earnings beat yet again shows that AEO's 3.4% dividend is not expensive for them, as it is a low payout ratio compared to their earnings.
AEO beat on earnings again, but the whole market was down today, so the stock opened this morning up 12% this morning, but has trended downward and is now only up 4% this afternoon. This might be the chance to buy a big winner at a price that doesn't reflect the big win.
DYODD, and GL to all!
The turnaround is in progress. I'm glad I rebought all the shares in the low teens that I sold in the 20s. I've traded around my core position for the last 3 years, and now I'm about to start making money on the way up towards $20 again.
Exactly, the 3.4% dividend is safe, this company has no debt and a pile of cash, and most importantly, Aeropostale and Abercrombie & Fitch have indicated long-term difficulties are still at work. American Eagle has taken market share from the other teen retailers, and there is no sign of that trend reversing.
Yeah, this is a great opportunity in the making. The company misses by just one penny (but it still earned enough to pay that large dividend and still have some left over to add to its pile of money), and because of that the stock is punished almost 20% because of it.
Keep in mind, the more the stock drops the more appealing the dividend yield becomes. This stock is a 'buy' in my book, and if it goes any lower, it becomes a 'strong buy' based on the stong fundamentals, and future growth prospects.
Hey Sandy, this morning troubled toy and video game maker Jakks Pacific just reported an earnings beat and the stock has spiked 20% on the quarterly report and positive conference call. Some of the message board commenters there have said that this stock had 35% short interest on a small float before the quarterly report this morning.
I have done ABSOLUTELY NO due diligence on this company, other than reading a handful of headlines, but I think this could be a short squeeze in the making since there was nothing but doom-and-gloom that brought this stock to a new 52-week low, and now everyone's saying that this is the start of a run that will cause a short squeeze. Any thoughts?