thanks a lot for bringing this article to my attention. it's very interesting. you're right, hopefully mr kanzer doesn't exxagerate this but it's certainly worthy of noting.

Large LES American Apparel to Become More Massive
Friday, December 14, 2007, by Leslie Price

The rumors swirling about American Apparel's expansion into 199 Orchard are true. A tipster writes: "The LES American Apparel is expanding into the space that was a restaurant behind it. I walked by this evening, and saw that they had already knocked down the wall that divided the two spaces. I turned the corner onto Houston, and saw employees loading boxes into the store from an AA truck. I assume there was clothing in the boxes." More evidence: On PropertShark, the phone records for the storefront at 199 Orchard Street have been switched from Big John, the last tenant, to American Apparel.

(note: LES is lower east side for those who don't know new york)

the new share count is higher than previously anticipated (it looks to be close to 80 mil) but this should prevent the need for a secondary. The supply demand equation should still be incredibly strong when the deal closes on the 12th. i expect to see $20 shortly after the announcement. With the cash infusion AA is getting they'll be able to open at least 20 new stores and easily surpass the average '08 estimate of 450 million. Lazard research is predicting $1B in sales by 2010. And we're trading at only about 3x sales. Fastest growth in the industry and cheapest p/s multiple of all the fast-growth retailers. Huge upside here.

great new research out about PP by BSR.
They did a very extensive interview with steve kanzer. in particular they got a very thorough understanding about what happened with the DORB incident at the FDA in May. I can't post the research b/c its an encrypted file but it is very favorable about kanzer and says that there is much more to the story than the infamous Time magazine picture implies (including the fact that kanzer's mother was dying of cancer at the time DORB's oncology drug was rejected) overall i came away with a revitalized belief in kanzer and his dedication to Coprexa, his co, and pipex shareholders. people who are aggressively negative on this company do not know the whole story.

but not every NDA is 20 years in the making and invented by the world's leading expert on the indication, designated orphan status and for an indication that is served only by dated therapies with weak safety profiles.

what happened? a trade at $14.97? this thing is weird

very active trading today.
the voting proxy is expected to go out "by the end of november"
with the shareholders meeting to take place on Dec 12.
We're drawing near, "this could be the end of the beginning"

Paul Noglows, research director at Lazard (nyse: LAZ - news - people ) Capital Markets, smacked a home run for last year's bulls. A Love Only One newcomer in 2006, he went for Deckers Outdoor (nasdaq: DECK - news - people ), an idea supplied to Noglows by Lazard retail analyst Todd Slater. Deckers, which makes footwear (Teva, Ugg) and keeps beating earnings forecasts, rose 163%.

For 2008 Noglows goes with another Slater recommendation and picks Endeavor Acquisition (amex: EDA - news - people ), a holding company poised to acquire American Apparel of Los Angeles. Noglows believes the deal will close and that American Apparel, whose name Endeavor will assume once the acquisition is complete, is a company worth buying. A vertically integrated purveyor of casual wear like T shirts and underwear, American Apparel had 2006 sales of $265 million. Noglows expects revenues to hit $340 million this year and $1 billion by 2010.

http://www.forbes.com/free_forbes/2007/1210/134.html?partner=yahoomag

eda and lulu
i always hesitate to compare the valuations of EDA and LULU b/c LULU has received such a rich valuation. But the fact is there is no other vertically integrated retailer out there with AA's brand strength and same store sales growth above 20% except maybe AAPL. (I don't know their exact numbers but the business model is similar)
Abercrombie, American Eagle, J Crew . . . . all these companies are way past their peak growth levels so it's impossible to compare. Under Armour, Crox, Deckers, are all good comparisons in terms of product but none of those companies have the store expansion model of American Apparel. The only other retail company out there with SSS growth over 20%, eps growth 50-100% and looking to expand their store base by more than 4 fold is Lululemon. And the overall nu,bers are very comparable. So in terms of market cap, why shouldn't AA and LULU be mentioned in the same sentence?
LULU has higher sales and eps growth but AA has MORE THAN DOUBLE the total revenue. (ie LULU expects 150 million in '07, AA expects over 350 million) In '08, AA is expected to have double LULU's revenue again. LULU hopes to expand to 600 stores in the next several years. AA plans to reach 800-900. Both companies have approximately 68 million shares outstanding.
But LULU has a market cap of $2.6 billion while EDA has a cap of 880 million. At a cap of $2.6 billion (and keep in mind that is not assuming the same valuation of LULU only the same market cap) EDA would trade at the same price as LULU, in other words 38.

indeed there has been a muted reaction to really impressive earnings. this stock is generally ignored for many reasons (none of them valid). i have posted repeatedly on investorvillage.com as well and have received minimal interest. The recent realmoney.com article is the only one of its kind in existence and it was instigated by me!
american apparel has yet to be recognized by the media or by analysts as a publicly traded co. b/c of the stigma against SPAC's. this lack of interest is not something that should discourage you but instead should be looked at as a great opportunity. awareness alone is likely to drive this stock higher as the deal closes.

agreed on all accounts

sure, i'm not sure why no one uses the PP board

i agree on all accounts. it's almost eerie how underappreciated this stock/co is. CNBC has done so many segments on retail over the last couple weeks and hasn't mentioned AA once! I scour the internet for retail blogs and analysis and almost never see EDA even mentioned at all.
once the merger is complete all that will change instantly.

i don't know the exact number of planned openings but here's a quote from the most recent PR:

Jonathan Ledecky, President of Endeavor stated, “We are delighted that American Apparel expects to significantly exceed its previous guidance of $40 million of pro forma adjusted EBITDA for 2007. American Apparel’s management has advised us that it has over 20 new store locations under signed leases and a significant number of additional new sites under development. We have agreed to increase the debt ceiling from $110 million to $150 million to allow American Apparel to continue its worldwide expansion.”

Biogen/Alzheimer's article mentions Pipex in the last par.

Juicier Plum For Suitors

Biogen, Neurimmune Entering Alzheimer's Deal: Up To $360M


By Randall Osborne

West Coast Editor

Amid reports of pre-holiday bidding for Biogen Idec Inc., the firm's potential $380 million deal with the Swiss firm Neurimmune Therapeutics AG for antibodies against Alzheimer's disease signals a business-as-usual approach that could make Biogen that much more tempting to would-be acquirers.

Biogen's stock (NASDAQ:BIIB) closed Tuesday at $70.21, down 4 cents.

The worldwide pact focuses on antibodies that bind to amyloid beta, the peptide that forms the plaques believed responsible for Alzheimer's, for which no approved, disease-slowing drugs exist. Neurimmune, of Zurich, Switzerland, will identify candidates with its Reverse Translational Medicine platform, and Biogen will provide up-front fees and milestone payments, totaling up to $380 million, though the companies did not break down the amounts. Biogen, in charge of development and commercialization, also will pay royalties.

Jennifer Chao, analyst with Deutsche Bank, noted that the early stage deal reinforces Cambridge, Mass.-based Biogen as the neurology partner of choice, and shores up the firm's pipeline in that space, thus supporting a higher valuation in merger talks.

"My sense is we may have a better sense on takeover outlook over the next four weeks, following what has been discussed as potentially first-round bids due by November-end," she told BioWorld Today.

Biogen's making the Neurimmune deal in the midst of acquisition plays "really doesn't apply as a surrogate for progress on the transaction," and most involved will view the agreement as positive, she said.

"I would say if management were very concerned about 'perception' they could have held back," she said, but Biogen "[has] a business to run, either way, deal or no deal."

In mid-October, the company made official its quest for buyers. Billionaire Carl Icahn, who owned 1 percent of the company, helped spur interest by putting $23 billion on the table, and New York-based Pfizer Inc. was among those sniffing around. (See BioWorld Today, Oct. 16, 2007.)

Icahn since has upped his Biogen stake to about 3 percent, or 8.8 million shares. He also disclosed in an SEC filing that, as of Sept. 30, his investment firm owned 1.5 million shares of Cambridge, Mass.-based Genzyme Corp., then worth $94 million. The shares amount to less than 1 percent of the company, but Icahn's stake suggested to some observers that the tycoon would target Genzyme next.

A handful of Alzheimer's drugs relieve some of the symptoms, aiding memory and cognition, but do not stop the disease's inexorable march. Approved compounds include Aricept (donepezil, Pfizer Inc.), Exelon (rivastigmine, Novartis AG), Cognex (tacrine, First Horizon Pharmaceutical Corp.), Reminyl (galantamine, Shire Pharmaceuticals Group plc) and Namenda (memantine, Forest Laboratories Inc.).

Candidates for better treatment include Phase III Flurizan (tarenflurbil, Myriad Genetics Inc.), which selectively lowers levels of amyloid beta 42, and the Phase III-ready monoclonal antibody bapineuzumab (Elan Corp. plc and Wyeth), which could clear amyloid beta from the brain.

Most, but not all, Alzheimer's therapies in the works target amyloid beta. Last week, Ann Arbor, Mich.-based Pipex Pharmaceuticals Inc. pointed to data from neuroscientists at the University of Rochester, which showed excess copper not only could cause the buildup of amyloid plaque, but also damage low-density lipoprotein receptor-related protein, which acts as a natural escort for ridding the brain of amyloid beta. In a mouse model, Pipex's lead anti-copper drug candidate, oral Coprexa (tetrathiomolybdate) gained a significant reduction in central nervous system copper (p < 0.05) and a 40 percent drop in insoluble amyloid beta (p < 0.05).

Published November 21, 2007

Thanks for the hills note.
regardless of macroeconomic fears, this stock is cheaper than its peers even though it is the fastest growing store of its kind. Once the deal goes through officially, we are almost certain to see some analyst buy ratings and major institutional demand. with such a small float and a large short position the supply/demand outlook is going to cause explosive upside very quickly.

people seem to have strong feelings about PP as if it's planning to be a massive co. It only needs one or two marginally successful products for the stock and mkt cap to go up. Coprexa for Wilson's and modest sales of the FreeBound device can accomplish this. we're talking about a $90 million co. If it can earn just $12 million in '08, that's about $0.60/share. A p/e of 20 puts the stock at 12. that's a double from here and VERY doable.

While it is premature to say that copper causes alzheimer's, it is clear that excess free copper can do damage to your body. This fact alone renders the FreeBound device very useful.

and Here's a good link about copper and Alzheimer's

http://www.sciencedaily.com/releases/2007/11/071107074329.htm

October 4, 2007

Unkempt, Urban, Ubiquitous.
American Apparel's creative cottons take over the world, one track jacket at a time.
By Kara Nesvig

"I'll take a cranberry Flex-Fleece hoodie and a Hangover Hat with a side of '70s soft-core porn, please,"

... is what one would order at the American Apparel Café, should such a wonder exist. A waitress in a body-hugging, slightly nipple-exposing white leotard and knee-high gym socks would jot down your request, and then hand it to a vaguely ethnic-looking cook in a terrycloth leisure robe, headband, and gold lamé hot pants. Before you know it, your order is delivered to you wrapped in a no-fuss plastic bag. You marvel at the softness of the cotton, the deep deliciousness of the color, and at the perfection of the fit; so overtaken are you by wonder at such perfect simplicity that you look around to notice that every other diner looks just as comfortably, effortlessly chic as you. It's a myriad of high-quality Henleys in the sheerest of jerseys, skirts with the perfect amount of drape, and rainbows of tank tops in every color you could ever dream of. No, little deep-v Dorothy, this isn't Oz; it's American Apparel - and it's planning to take over Minneapolis, one track jacket at a time.

The mythical status of American Apparel is quickly approaching legend. Though it was only gifted to us in 1997 by CEO Dov Charney (more on him later), the brand has skyrocketed to success; they've opened hundreds of new stores all over the world in this past year alone. American Apparel Jerusalem? Sure. American Apparel Hong Kong? It'll happen. And all this fuss for a bunch of T-shirts? Absolutely.

Customers wouldn't have it any other way. "The pieces are so simple but can be worn in countless ways. I love that I can buy a blue v-neck tee and wear it with jeans or a high-waisted skirt. It's essential for everyone's wardrobe," says senior Lindsay Johnson, spotted wearing American Apparel's ultra-popular tri-blend fabric T-shirt.

"It's somewhere you can buy a dress with a silhouette," adds Uptown store shopper Carly Scheer. Clearly they're doing something right.

Besides the fabulousness of the fashion, American Apparel has an admirable reputation. The clothes are made domestically; everything comes to you direct from Los Angeles. There's no trace of anything from Malaysia, China or Pakistan; it's 100 percent "sweatshop free."

American Apparel has also gained quite a reputation for its excellent treatment of its employees. They boast of creating more than 5,000 jobs and their employees glow with appreciation. "They treat us so well, and working here I'm getting more pay than I've had anywhere else in retail; my benefits, breaks and discount are all so great," says Uptown American Apparel staff member Vienna Wilson.

And it's finally trickled down to Minneapolis. The Uptown store opened Friday, Sept. 21 and business has been "fantastic," according to store manager Aaron Murphy.

"I was surprised it hadn't come to Minneapolis sooner; it's the greatest location for the store besides Chicago and Los Angeles," he said.

Obviously its Uptown locale (it's housed in the old American Eagle building) is perfect for the store's target clientele: young, fashionable people. "I hope we'll bring some re-growth and revival to the Uptown area; it's gone downhill lately because so many businesses are closing," Murphy said. (Need we remind you that American Eagle itself only lasted several months in its Uptown location?) Murphy has a point: Uptown these days is much less brilliantly lit and full of life than in its past incarnations.

But what can save it? Rumors of an H&M moving into that ghost town of a Gap building float all over Minneapolis, and maybe the combination of American Apparel and H&M, fashion-forward retailers renowned for their great garments with even greater prices, will breathe some new life into everyone's (including Prince) favorite too-cool-for-you hangout. After all, what is our beloved Calhoun Square without a herd of hipsters?

Speaking of those cardigan-wearing, thrift-store-haunting kids rocking Animal Collective in their earbuds, what is it that makes American Apparel such a hipster hotspot? Is it the ultra-short hot pants one can rock with an itsy-bitsy vest and '70s throwback gym socks? The wear-with-anything leggings that even come in blindingly shiny silver? Is it the skintight, figure-clinging dresses that still manage to flatter and draw catcalls? Or perhaps it's the unisex appeal of nearly every garment? Maybe it's the indie-kid staple scarves that can be worn in over 50 ways? In its very simplicity, American Apparel's designs encourage your creativity; have fun, accessorize, don't take fashion too seriously! And what's more classically American than a white t-shirt? Dress it up, dress it down, do what you want. We've laid out the basics for you; now make them your own.

The grassroots appeal of the business is also a draw for the young and political; American Apparel's anti-sweatshop aesthetic is refreshing in a world where your Gap sweater was sewn in Indonesia and your Hollister jeans were pieced together in India. The young and hip citizens of the world have their fingers on the cultural pulse, and right now that pulse is beating out: "American Apparel." And although American Apparel's target audience is definitely the youth, there's no reason why your mom can't don some of their more understated garments; just keep her away from the hot pants!

However wonderful, American Apparel raises its share of eyebrows. CEO Dov Charney, a 38-year-old Canadian who began his forays into the great big world of cotton vending as a college student, isn't shy about the use of sex to sell his product. "We like sexy at American Apparel," he has stated.

Charney has also gotten a bit of heat from critics for his antics; when being interviewed for the now-defunct "Jane" magazine (R.I.P!) several years ago, Charney had no qualms about pleasuring himself in front of the reporter. He encourages relationships between co-workers and often dates his employees. His free-love ethic and utter openness about sexuality draw plenty of disapproval, but it has proven to be a business aid. A swirl of controversy only adds to your mystique, after all.

And American Apparel is sexy indeed. Take a peek yourself: Surf around the Web site or check out the displays in-store; the models are almost always in various states of undress, as if the photographer has caught them in the heat of an intimate moment - or in the glow of the aftermath.

The advertisements are striking in their simplicity; the models are often plain and bland-faced, starkly juxtaposed against a plain white backdrop. It's reminiscent of 1970s soft-core pornography. The male models sport barely-there boxer shorts and slight mustaches while the females are untouched by makeup. They are blank canvasses for you to project your own fashion fantasies upon. Often the images are such raw and racy interpretations of the human form that they make you a bit uncomfortable.

But using sex and sensuality to sell style is nothing new. Designers like Calvin Klein, Gucci, Versace and even your friendly neighborhood Abercrombie & Fitch have toed the line between fashion and fornication for years. Sex sells - everyone knows that.

"We're straight out of L.A. We're boisterous. The people expect that from American Apparel," says Murphy. "And people recognize it as a genuine, legitimate company too - good clothes, good prices."

With your curiosity now sparked and visions of pencil skirts and cardigans dancing in your dreams, get yourself to the Uptown location and dive into the wonderful world of American Apparel. All the cool kids are doing it.

incredible Q3 results!

http://biz.yahoo.com/bw/071112/20071112005906.html?.v=1

valuation:

The current analyst consensus is for $345 million in revenue(which we will undoubtedly surpass) and 440 million for '08. At our current price of $13, we are trading at less than 3x trailing sales and only 2x forward sales!
GIL = 5.25x sales
UA = 4.2x sales
CROX = 4.1x sales (even after recent 40%+ decline)
DECK = 4.5x sales

And don't even ask about LULU which is probably the closest comparison!

Our '08 sales will grow at at least 35% but likely more as retail sales become a greater percentage of sales compared to wholesale, margins expand, same store sales grow over 20%, and we open 20-25 new stores. (Retail sales are growing at a rate of more than 50%)

We're expanding faster, have better same store sales, and have a hotter brand than almost anyone in the industry. With store expansion happening all over the world, namely Canada, we can also benefit from the weak dollar. A fair valuation could very likely give us a double from here in a short period of time.
$26/share gives us a mkt cap of $1.77B, still just 4x forward sales.

Does anyone have access to the Lazard report about EDA today? I understand the price target was raised to $20.
Please share!

27% ame store sales! that is practically unheard of! that is lululemon territory! i can't wait for the Q3 report. if we get the valuation we deserve this stock will be a 20 in no time.

pipex added back into BSR model portfolio, citing new AD data, upcoming catalysts, and warrants mostly having been exercised

i don't think they own thier locations but i'm surprised to hear you were at a mall. i was under the impression they didn't have any stores in malls. which location were you at?

press release confirming deal should be out any day now, definitely this week. . . . stay tuned

an old link but a pretty good one
http://www.genengnews.com/news/bnitem.aspx?name=11119789

Everyone investing in this company needs to watch this interview. The media, always looking for controversy, will be quick to attack our ceo. But Charney is a visionary and his unorthodox style is a big part of what makes this company great.

http://americanapparel.net/gallery/charlierose/qt.html

American Apparel is going to have a huge edge as other retailers struggle to catch up to the new paradigm in social responsibility.


"Gap plans 'sweatshop free' labels"


Observer story prompts clothing giant's pledge

Dan McDougall
Sunday November 4, 2007
The Observer

In what would be the biggest commitment to ending child labour ever undertaken by a major retailer, Gap Inc is drawing up plans to label its products 'Sweatshop Free'.

The ambitious pledge, which would place the firm at the forefront of the battle to end sweatshops, comes in response to an undercover Observer investigation which last week exposed one of the firm's Indian suppliers employing children as young as 10 to make garments.

Article continues
Yesterday, Gap's senior vice president, Stanley Raggio, flew from San Francisco to New Delhi to meet the anti-sweatshop charity the Global March Against Child Labour, to hammer out proposals to tackle child labour.

According to Bhuwan Ribhu, a lawyer from the charity, the US conglomerate set out a series of ambitious proposals including a move that would see it relabelling its garments to allow the consumer to directly track online exactly where they are made.

The system would closely mirror the highly successful RugMark programme which has largely eradicated child labour in India's carpet industry.

As an organisation operating independently of the carpet industry, RugMark certifies carpets bearing its label are free of illegal child labour. This is accomplished by monitoring looms and factories through surprise and random inspections.

Ribhu said: 'We spoke at length to Gap and they informed us they are looking at a certification system that marks a product with a label "child labour free". This would be a bold step as the firm would leave themselves open to prosecution if children were found making their clothes again. Gap also intimated to me that they are considering using independent monitoring of their suppliers in Asia and this would operate along similar lines to the RugMark programme. The firm is also calling on their competitors to adopt a similarly tough stance.'

He added: 'The Observer's report should act as a wake-up call for the entire industry and the business community at large. The industry should now come together and make a strong commitment against child labour and the trafficking of children for forced labour in their entire chain of supply and sourcing. This should not only be in words but in a clear and concrete plan of action.'

Speaking from San Francisco, Gap spokesman Bill Chandler confirmed yesterday's meeting between senior Gap executives and the Global March Against Child Labour and told The Observer the firm was laying down the groundwork for a major commitment to fight the problem.

'Gap Inc has had many conversations with experts in the field before and obviously since The Observer investigation. We genuinely appreciate that The Observer identified this subcontractor, and we acted swiftly. Under no circumstances is it acceptable for children to produce or work on garments.'

Marka Hansen, president of Gap North America, said the firm's prohibition of child labour was non-negotiable.

good point, also 6 in canada which should be especially good.

This is indeed right up Peter Lynch's alley
(a la "the limited")
The fact that we seem to be the only two following it is really odd. The message boards are practically empty or sometimes non existent. There are rarely any articles written about it. The trading volume is tiny,though it's picked up a bit lately. But I attribute it mostly to the skepticism surrounding SPAC's and that EDA rarely puts out press releases and doesn't do any marketing at all whatsoever. But believe me, they sure will after this deal is done.
I've also been corresponding w/ one mutual fund manager who has a small position and the columnist from thestreet.com I mentioned in one of my earlier posts. They are as bullish as we are but are curious to see how the market reacts to Dov Charney's unusual personality. I think it's going to draw a lot of publicity to the stock which will undoubtedly be a good thing.
We should definitely see a press release this week. Depending on the final share count (hopefully not substantially above $60 million) and timing of the close, I expect to see $20 sooner rather than later.

the options are also now trading. The May 12.50's and May 15's look excellent. I've picked some up. I think we can expect to see a press release announcing the SEC's approval of the deal as early as next week. You def. want to be long when that PR comes out. This secret won't stay quiet much longer.

crou, you did a nice job of timing this over the last couple weeks.
but you want to be sure you're in this before they announce the submission of Coprexa to the FDA which could be as early as next week. (prob the week after)
This is a huge development that will undoubtedly bring some much overdue attention our way

the trend is growing

http://www.google.com/trends?q=%22american+apparel%22&ctab=0&geo=all&date=all&sort=0

EDA is so ignored and underappreciated b/c of the stigma against SPAC's. There is so much negativity surrounding SPACS that people aren't even valuing this stock based on American Apparel yet. When EDA receives a letter of approval from the SEC (w/ in 3 weeks) poeple are going to start realizing this is for real!

This tragic, contemptible situation bodes very well for American Apparel. It is at the core of their business.

The Gap Child Labor Report: Sweatshop Controversy Heats Up
By Nancy Streets
Oct 30, 2007

A British newspaper has reported allegations that vendors who make clothes for The Gap in India are using child labor. Britain's Observer newspaper on Sunday reported that it had found children making clothes with Gap labels in a squalid factory in New Delhi. It quoted the children as saying they were from poor parts of India.

The children were as young as 10, came from a poor farming district on the other side of the country, and said they had never been given promised wages for working up to 15 hours a day embroidering sequins onto the flowing saris worn by Indian women.

***

The Associated Press is reporting that the "working and living conditions in the sweatshop just blocks from where the Gap clothes were being made were grim — the boys were packed into a filthy room, sleeping on the same floor where they sewed all day."

Someone posted this on the Moptley Fool board. "I'm torn, the company has great growth but management is a little suspect... If you value this like a UA or LULU, it's a double from here... I'm sure this would have come out as an IPO around $20..."

The idea is right but let me clarify:

If you value EDA like LULU or UA as you mentioned it would be FAR MORE than a double.
LULU trades at 30x ebitda, 9x sales. At 30x ebitda EDA would trade at 27.50 (~55m in ebitda for 2007 x 30 = 1.6B market cap/60m shares = 27.50).
At 9x sales estimates(~350m) it would be at $52!
UA trades at 5.6x sales and 37x Ebitda. That would put the stock at $32.60, or $34 respectively.
If you think those numbers are absurd, think again! AA has 24% same store sales growth and 51% overall retail sales growth. This stock is going much much higher.

1 more reason why this stock is going higher (in addition to AA fundamentals):
THE FLOAT!

There will be about 60 million shares upon completion of the merger. 32 million shares go to Charney and are locked up for 3 years. That leaves 28 million shares.
Fidelity, Morgan Stanley and Fred Alger each own more than 2 million shares (closer to 3 million). The 3 institutions together own over 8,000,000 shares. That leaves 20 million shares. Several other institutions put together (including SAC capital, 2 JP Morgan growth funds and a few others) own over 5 million more shares.
That brings the active float to 15 million. Then, 4 million shares are sold short. That brings the float to 11 million.
11 million shares!
For a company that has been ignored for this long, with such explosive growth , and only 11 million shares active (and of course many holders won't be selling yet) we are in for some explosive upside.

The following is a letter I wrote to thestreet.com today. It is a good starting point.

I have one concern about this stock and that is the share count. I spoke to investor relations and they indicated there would be a press release in the very near future that would clarify that issue but that we could expect the count not to differ significantly from the 58 million number given in their 12/06 presentation.
That one concern aside, I think your numbers are far too conservative. Here's why:
In light of their recent announcement of 24% comps, AA is going to get a hefty premium to the market. 24% (as I'm sure you're well aware) is practically unheard of in retail outside of lululemon, and lululemon's low 30's comps are partially attributable to the recent strength of the CAD. So while I wouldn't expect 9x sales and 30x Ebitda like lululemon, I would point out that I think many people who missed lululemon will see AA as a "second chance." AA however appeals to a much larger crowd with more opportunity for expansion (a 7-10yr goal of 900 stores worldwide, compared to lululemon's goal of 600). Lululemon has a market cap of 3.38B (yes I know it's nuts but humor me for a minute) with Q2 revenues up 80% to 52 million. AA's Q2 revenues were 95.6 million, w/ retail sales up 51% but AA garners only a modest market cap of ~661 million. AA's expansion is really only beginning as they receive the influx of cash from the merger. Both companies are growing EPS nearly100%. Again, I am not saying I expect AA to get a 300 p/e and trade at 9x sales (though I'd like that). But possibly a fairer value for AA might be near the price of lululemon's close on its first day of trading, 28 (market cap - 1.8B) before investor euphoria took hold.
> But let's say that lululemon is the exception and AA doesn't get that kind of premium.
> Even at 3-4x sales - (ZUMZ gets 3.7x sales, 24x Ebitda w/ similar revenues but a fraction of the sales growth and eps growth. VLCM trades at over 4.5x sales, 20x Ebitda also with significantly lower growth) - we're looking at a cap of 1.2B/58m shares (though that no. may change slightly) = $20 share price. I also think the $40m ebitda number is crazy (as you pointed out in your article) seeing as they did $18m in Q2 alone (28m so far this year) and they're not going to suddenly start doing only $6m per quarter. So I wouldn't value the co. on that estimate. We should see Q3 earnings in the next couple weeks and we'll have a better idea.
>
> American Apparel aside, i think there are two major additional upside catalysts.
> 1. a 30% short position in EDA. This is largely due to an arbitrage opportunity with the outstanding warrants but nonetheless it will provide buying power and support.
> 2. My research indicates that there is such a powerful stigma against SPAC's that half of Wall Street wouldn't touch one even if they were handing out free shares. While SAC (as you mentioned) owns a stake, Morgan Stanley owns a large stake, and a few others . . . I believe this is a stock that would get a thrilling response as an IPO but is being largely ignored as a SPAC. It often trades under 100,000 shares and that is certainly not due to a lack of excitement about AA. It might take a few months for people to warm up to it after the unorthodox method of going public, though AA's Q3 report will probably assuage any fears people had.
> Come December, there is going to be a tremendous demand for one of the hottest retailers in the world, growing eps next year likely at (100%), with a social conscience that should appeal to many investors and certainly appeals to AA's customers. And anecdotally, any investor with kids or who has been in one of these stores knows that these clothes appeal to a massive demographic of almost all ages, ethnicities, and both sexes.

I absolutely agree. This company is extremely appealing on many levels and I'd love for that to be displayed here. Technical analysis is certainly important as well but I think Pipex's most important attributes are its fundamentals. We are remiss if we don't even mention the many products and opportunities this company offers. So let's go for it!