American Eagle (AEOS)

[Stockowner]

It's 13-14 dollars per share now, npg :)

I saw a major decline in stock price yesterday (I think it was a 14 percent decline?), and the P/E is at 8, P/CF is at 6. It is a simple and understandable business, and carries with it a 3 percent dividend yield. Insiders have also been buying a lot. AEO - American Eagle Outfitters Inc.: Steve Mandel, Robert Olstein, Richard Aster Jr Stock Picks , News -- GuruFocus.com

[Stockowner]

I think the management is aware of the risks.

Return on assets is about 20 percent, return on equity 26-30 percent. The company has very solid growth, very solid balance sheet.

I personally think/feel the company is worth about 25 times earnings, which is almost 3 times as much as the stock price today.

It seems though that the company has sold a lot of "short-term investments" in 2008. If these include stocks, I can't see how it is likely that decision was sensible.

[tombrown1]

Technically it looks like a pretty good short opportunity now. It's in a beautiful downtrend and is now hitting resistance.

[Gunnski]

This is a tough call for me. I have triggers that say buy. Others that say sell (short).

My gut tells me it may and try and fill the gap, back to the $16.00 area. In a consolidation area currently. Look for a breakout soon! Which way is the big question.

I hope the attached PDF came through. Check it out. The report is very straight forward.

Scottrade Market Report: "AVOID" is a key word for me.
file.pdf