The recovery in American Apparel continues as the stock crossed $10 yesterday for the first time since the beginning of April. The stock bottomed out below $6 in late July and August. The latest catalyst was August comp stores sales which reported yesterday at 31%! APP has been comping at or above this level all year. The store bas is young and small so I expect comps to remain very healthy although they will obviously slow. The latest comps follow a very strong and clean 2Q08 and solid conference call in mid-August. The chart looks great. I think the shares can work to at least $11-12 on a strong 3Q driven by back to school which is a key focus for this teen-oriented retailer. Plenty of shorts here thanks to the accounting issues and actions of controversial CEO Dov Charney. I’ve felt it was a risk worth taking given the outstanding store level execution. It appears that the investors are finally giving more weight to operating fundamentals as confidence in management builds.