Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: Three Reasons to Not Try on AnnTaylor


Friday's top stories and stocks with potential to move.

It's been a crazy morning already. My computer froze three times and I had to reboot each time. It's still too early in the morning for a drink, right? It's Friday, does that make any difference?

Although China was up the Hang Seng and the Nikkei were down 0.64% and 1.4% respectively. Meanwhile, European stocks were showing me some green earlier this morning. And here in the US we are currently trading...

So here's what I'm seeing this fine Friday morning:

AnnTaylor (ANN)
Excluding items AnnTaylor put up $0.06 in the second quarter, and that was a hefty 3 cents better than expectations. But in spite of that I am not trying these guys on for size.

1. Yeah I'll be the first to concede that AnnTaylor enjoys a great reputation among the fairer sex, and I think it certainly could roar when the economy comes back full force, but its expected to lose a bunch of money this year and earn just $0.20 next year, which in my mind isn't too swell for a stock that trades north of $12.

2. At the end of the ol' day I think there are better plays in the retail space right now. Again, I remain a bull on the discounters, because I think there's more near-term upside potential to be had there.

3. What's going to take this stock to the next level? What's the next big catalyst I should be on the lookout for? Let me know because I can't tell you, which is why I'm sitting this one out.

Gap, Inc (GPS)
I don't know about you, but I saw a few good tidbits in the retailer's second quarter release.

The first and the most obvious is that it put up $0.33 in the period, which was a pretty penny better than expected. It also beat on the top line too. To boot its gross and operating margins rose.

Some thoughts:

1. Its comp store sales numbers left a little to be desired but overall I thought it was a good quarter. And I continue to believe that a new 52-week high isn't too far down the pike.

2. Hey, nobody is really talking about it this morning but I found this line in the release very interesting: "The company announced that it will likely resume share repurchases in the third quarter of fiscal year 2009." Pretty neat with the stock kinda near its high, right? Me thinks it's a good sign.

For my previous take on Gap click here.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos