Not happening. (Investor since Jan '12 [bought and sold a few times], watching since April '11)
For so long and I agree this stock has been a dog with fleas so the ole' sell to avoid getting caught in the tidal wave of panic that causes the stock to drop 15% in a few hours is a thing of the past. (Treating it like any other penny stock, a pure gamble). I've seen it happen a few times and each time I was like I don't like this price point for a sell but this is about to plummet, which caused me to hang onto the stock longer than I wanted but created buying opportunities as well.
We know about the improved numbers this past quarter and the last road block was this re-financing. I believe i read April 3rd to take effect. The importance of that is putting back to back good quarters together and getting those absurd debt deals off the table. I can't stress the importance of good back to back quarters enough. You fought hard to get there and you show you are back and then prove you are back with another strong quarter. If you don't do that, then you slip right back to $1.25-1.50 and you are essentially back where you started. We've been getting killed by the high interest and that has been detrimental to our FCF (free cash flow). We can't invest bc we haven't had the resources to bc we've been paying this damn debt and high interest. Which when you look at any debt deal you are paying almost entirely interest and very little principal comes off the table.
There is no more pullback. There is no getting this baby at $.75, $1.50, or even $2 now. That's a company that's on the verge of bankruptcy. Your last pullback was the last two days bc I expect this stock to be up a conservative estimate of 5% on Monday with me leaning more towards 10% now that the debt restructure has been finalized, not just rumored. It takes effect April 3rd so this next earnings should be even better than the last as we've gotten a more reasonable interest on debt.
Now when the company turns a profit for the quarter they can turn around and buy inventory (Cotton has been pretty cheap) or put the money somewhere else to earn a return. For quite a while they've been fighting to keep their head above water and have sold just enough to do so and that money has been going to paying down debt so there's been little chance to improve profitability. But when you are doing that you can't improve as you are just staying alive. That's why this stock has looked bleak in the eyes of the market the past few years.
I'm here to tell you American Apparel is back. I would say people are starting to buy their clothes again as it seems to have gone back in fashion. The debt situation has been resolved. I would like to see them replace old inventory with new but I've seen sales and such so it seems like they are determined to do such a move. It is really like the perfect storm as everything is starting to come together.
Started at $.75 in January '12, sold some Sept '12, bought some more after the plummet, sold some March '13. Sitting at 10,000 shares and don't expect to sell until at least $3. I am a college student studying finance
We are back on Blue Star buddy boy ...
