The hedge funds own a company heading for BANKRUPTCY. The only way they can get anything out of this company is by squeezing the shorts. And they are doing it through bogus press releases. They can not sell becasue the stock is worth half of what it is trading. They are losing money and this is the only way to pull of a fraud and salvage some money out of a dead company and a soon to be worthless stock.
I know many of you are skeptical of a deal happening. In my opinion, the deal will happen because of 2 reasons, one, the major benefits of synergy. Two, it would look criminal to report a buyout a day before an earnings report that showed major losses and for the deal not to happen. It would be such an overt stock manipulation that no one would risk their credibility and freedom, if it wasn't true!!
My guess will be that ANF will be acquired for $18 a share. 12 month EBITDA $200 million - conservative multiple of 6 would be $1.2 billion. ANF has almost $600 million in cash and total current assets > liabilities. Overall multiple of $18 would be 6 multiple a seven multiple would be close to $21 a share. I feel that $18 would be a good deal for both ANF and American Eagle.
Buyout talks with no $$$ figure a day before earnings is pretty sketchy
Talk is cheap. Reporters should be more professional and less manipulating.
Where else can you see a company report a HUGE loss of 91 cents over expected of 70 cents......declining sales, declining comps, declining margins, closing stores, already trading at a PE of 280.....go up 9% on a hedge fund released rumor the DAY BEFORE earnings that the company refuses to talk about because unlike crooked hedge funds, they have to be honest where hedge funds are crooks. This was another terrible quarter and the stock us up 9%???? Pure manipulation of a crooked and done stock. %.
Does anyone really believe that American Eagle, which is preforming well as a retailer and has increases in same store sales, would want to aquire the most hated brand in retail and which is losing money? Does American Eagle want to double its mall location presence in malls that are going out of business? This is a hedge fund propaganda stunt designed to cover up the disasterous quarter that will be reported tomorrow.
Brick and mortar, brick and mortar, brick and mortar...
That's all you hear people ranting about these days. Sit on a bench outside A&F across from Wynn in Las Vegas and it's a constant flow of customers walking out of the store with A&F bags on their arms.
Brick and Mortar is far from dead. It's all about, and has always been about, LOCATION, LOCATION, LOCATION!
This tells you how crooked the Hedge Funds are. They took some profits when the announced the false rumor and now ONE DAY before earnings, after the stock fell below the price it was before they mislead investors, they run the stock up again. Common sense tells you that AEO would never consider this deal. They are doing well on thire own. To make this announcement hours prior to their announcement of an increased loss over last year is a fraud by the Hedge funds that manipulate this stock and the press releases behind the company.
I would be very surprised if stock goes up on earnings.
Thoughts on upcoming ER?
Some think estimates are so low it's going to do well. I honestly can't see any B&M company these day doing well after ER. Wouldn't be surprised to see $11.50 Thursday morning. JMO
Fran Horowitz's skill-set hard to ignore. Buy the dips from here.
ANF reports much bigger loss then expected - 91 versthe lowered expected loss of 71 cents. But the hedge funds reduced the sales target enough so they can post the headlines that it was a BEAT!! And we will ignore that the 661 million of sales is another huge year over year decline from the 685 in the first quarter last year. Naturally the stock is up on declining sales and a huge miss on the loss number. This is hedge fund manipulation of this stock. For sure American Eagle wants a company losing money ever quarter and its losses increasing evey quarter over quarter because they beat on lowered sales estimates.
Have to wonder if any of these private equity firms now bidding for the company helped force the share price down to grab the company for less. Report today is bullish on the business counter to all the hysteria over the last few months.
Yeah it's amazing hedge funds can start a bs buyout rumour and profit from it but when some poor skin did the same thing with FITBIT the GNU is prosecuting him the the fullest extent of the law both criminally and civilly. The poor SOB only made a few thousand of his calls.The hedge funds made millions off this.
only 68 ,000,000 shares cash 547,000,000 = 8 DOLLARS PER SHARE
So with this big jump and earnings expected to be a loss on Thursday, does it make sense to buy puts now?
It seems like a lot of people is mad with $ANF pop in the last days. Come on... lets enjoy the ride...
The estimates for the quarter are down from a year ago and the promise of a turn around is a broken record. Every quarter is a decline. The pattern is to reduce the estimates so they can beat them and the hedge funds pay for press releases that make it appear they are doing well. Well a 71 cent loss projection for the quarter on another quarter of declining sales is the reality of this hedge fund stock. They are in malls, they are the most hated brand in retail, management is failing and has to take stock because there is no cash. This company is in trouble yet the stock is trading as if this is the best retailer in the sector. The rumors should of told the story. No one wants the most hated brand at any premium when all it has is unwanted inventory and inflated mall rent agreements.