Wall Street Buddha

ARO- Trade executed August 25, 2009

Well I took a position in ARO (Aeropostale). On Friday, so far things are panning out as expected. As always I try to enter a trade that will yield a 20% move in the market.

Fundamentally speaking, retailers are in a bad position as consumer demand has been weak in the recent years. However, I see that consumers haven’t gone away, they have just shifted their habits. While companies like ANF (Abercrombie) PSUN(Pacific Sunwear) and other “premium” retailers are suffering. Kids just don’t wanna spend $60-$70 bucks for a cool polo shirt. Or a t-shirt for $40. They can get the same premium style at Aeropostale for alot cheaper.