teenagers fashion retailer - Buy 'Em While They are fashion

Clothing sales-oriented buyers fickle youth are difficult to predict. Guess the correct fashion trends can mean big profits. Can score out-of-sync low and low profit margins. No company ever selling the hottest product lines while avoiding slow. Retailers seem to be relay adolescence dominant aura good choice. EPS and net margins can vary widely. The best way to play for this group to buy against all odds, when fundamentals are low and sell when things "do not be much better." Michael Kors Outlet Online American Eagle Outfitters (AEO) were good years for the fiscal year 2000 and fiscal year 2001 (ended January 2002) EPS was initially priced at $ 0.43 and $ 0.48 (split-adjusted). Net profit margin increased by 8.4%. If you bought in early 2001, when the high margins that you are paid $ 13 to $ 14. These shares were selling for less than $ 4 in late 2002. Of fiscal year 2000 to fiscal year 2002, earnings per share declined 4.7% share clearly overreacted. Share OAS has given more than 70% of their value. Fast forward to the end of 2006. Net profit margins had increased again, this time to an even higher 13.9%. The shares reached over $ 34. Those who bought the good news later wished, they could not have it. AEO shares fell by 79.9% ($ 34.80 to $ 7.00) EPS 2008 at 41.8%. Who is willing to swing the arms and negative comments are to be ignored, could buy analyst after margins were halved. Bottom fishermen near $ 20 was traded for a profit of over 180% at the end of 2009. Money in American Eagle was easier if you were against the current. Abercrombie and Fitch (ANF) is a retailer of high-teens who everyone loves to hate now. EPS reached $ 5.20 and net profit margins high of 12.7% for fiscal 2007 (ended December 2008). Enthusiastic buyers paid as high as $ 82 for all the good news in the spring of 2008. We would expect that ended badly. ANF ​​fell from a cliff in the recession this year. ANF ​​shares bottomed at $ 13.70 for a short time. Buy when the message has been well made, proved to be a poor strategy. Traders who have to ANF earnings and margins had been decimated, were with the possibility of under $ 20 to over $ 78 rewards go in about 2.5 years. Today, over 12 months reported EPS are very low. Abercrombie net profit margins are as bad as they have always been. This will probably love a chance for transition brave men rebound opportunities. ANF ​​shares are now offered at $ 32.38, while the fiscal year 2012 and fiscal year 2013 are centered estimates of $ 2.53 and $ 3.15 respectively. Morningstar takes a value of $ 42 and only ANF rate 4-stars (out of 5). Even this modest target is 29% above the current price. Standard & Poor's estimates that the fair value is slightly higher at $ 43.80. This leaves room for price improvement of 35%. S & P gives ANF of good quality. These actions are not undesirable.