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 […]
One of Northlake’s biggest portfolio headaches is a lot better today. Pain relief came in the form of very solid quarter from American Apparel (APP). 2Q results were inline to a bit better than the few analyst estimates. Revenues of $133 million exceeded the estimate of $126 million. EPS of 10 cents matched estimates despite […]
APP reached agreement on a new amended credit agreement with its lead bank. Back in early June the stock took a dive on the day the company announced that negotiations were ongoing but that the first deadline had been missed. Not surprisingly the shares are rallying nicely today, up 6.5% right now. Volume is decently […]
I am quite encouraged by the action in American Apparel (APP). After getting whacked again on Wednesday off a confusing earnings report and conference call, the stock has bounced back strongly. The initial post earnings trades held above the April lows and unlike in April a rebound got underway quickly. Also, volume spiked for one […]
Controversial and rapidly growing retailer American Apparel reported 1Q08 results last night after the close. While there are many extremely positive numbers in the results, I believe that several confusing items will cause the shares to trade lower today, possibly much lower. That said, I think the trends in core retail business look better than […]
The Wall Street Journal wrote a damning and extremely damaging article about one of Northlake’s long positions. The story on American Apparel (APP) appeared on the front page of the Saturday edition. As someone who had done his homework and read the filings, most of negative news in the article was nothing new to me. […]
I was quite pleased with the 4Q07 results, 2008 guidance, and conference call from American Apparel (APP), which reported after the close last night. The consensus I was using consisted of just one analyst so it wasn’t really meaningful. Just three analysts asked questions on the call but they were enthusiastic, asked a lot of […]
With all the chatter about Lululemon Athletica (LULU) following the New York Times expose’ on the seaweed or lack thereof in certain items the company sells, I thought it might be a good time to provide an overview of Northlake’s only long position that is not involved in media and telecom. Endeavor Acquisition Corporation (EDA) […]
In the midst of the carnage yesterday, Northlake had one winner: Endeavor Acquisition Corporation (EDA). EDA is in the final stages of completing its acquisition of privately held American Apparel, a very hot teen retailer. The shares rose over 5% on heavy volume in response to a very positive press release. EDA announced that that […]
Outside of ETFs, Northlake clients own only one stock that is not involved in media or telecom. The company, Endeavor Acquisition Corporation (EDA), is a special purpose vehicle that has agreed to purchase teen retailer American Apparel (AA). The deal was announced last December and is scheduled to close in the second half of 2007. […]
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