‘Tis The Season to Be Jolly.. With APP

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If you are having trouble viewing this message, please go to http://community.icontact.com/p/stocksgonewild/newsletters/sgw/posts/tis-the-season-to-be-jolly-with-app [1] [2] [3] [4] RECENT WINNERS: YBTVQ: +4233% SCNG: +660% STHG: +1100% WSRA: +700% THE NEW WILD PICK IS…

APP (American Apparel, Inc)! Good Morning Fellow Traders, When we discovered APP – American Apparel, trading at .55 cents we were astonished.

Walk over to any American on the street, and they will know about this company.

Recently, the company hit an all time low of 0.52, and a bounce has already started as indicated by a recent MACD cross and apparent failure to break through the low it created at the end of November as it starts to curl upwards and head north.

Some of its recent changes includes a new CEO, some business changes, and more store openings along with the current 285 stores already operating worldwide! See below for our in-depth analysis and all the reasons for American Apparel`s recent price action.

Our New Wild Pick is APP (American Apparel, Inc)! APP is trading at . 55 Begin your research at [5]http://americanapparel.net/

Yes, you heard us correctly….

APP IS TRADING AT ONLY .55! We`re talking about a Multi-National company named the “2008 Retailer of the Year” with over 285 locations worldwide from the US to China and employing over 10,000 employees trading in mere PENNIES! Needless to say, when we saw this, we were absolutely floored! How can this be And how big of an 0pportunity could this be at such a cheap price We`ll get to all that…

Now if you have not heard of American Apparel you simply need to get out more and throw those Wrangler jeans in the trash because this is 2011 and APP is one of the biggest and hottest clothing brands in the world today.

How big Well with over [6]285 stores in 20 different countries and in almost every state in the US with a very aggressive and “attention-grabbing” advertising campaign, it`s pretty hard to miss. As you can see on the left, APP knows how to get the consumer`s attention.

In fact, you`ll find it hard to find any female under the age of 30 wearing leggings without an APP tag! American Apparel (NYSE: APP) is a vertically integrated manufacturer, distributor and retailer, based in downtown Los Angeles, California. APP opened it`s first retail location in 2003 and became the Inc. 500 award recipient as one of fastest-growing private companies in U.S.

Within APP`s business model, knitting, dyeing, cutting, sewing, photography, marketing, distribution and design all happen in the company`s facilities in Los Angeles. The company operates the largest garment factory in the United States, at a time when most apparel production has moved offshore. With recently opened stores in China, APP is now selling Made in USA clothing in the largest consumer market in the world.

APP came to immediate prominence by targeting teens and young adult “hipsters” with clean, well-made, and sometimes provocative clothing. APP retail locations cost little setup and generally target urban retail locations with less expensive property values for acquisition allowing the company to expand faster than any retailer in history.

It`s line of clean and simple t-shirts, hoodies, and undergarments have become necessary garments for both men and woman. Today, you can find an APP location in almost every modern major city in the world.

TECHNICAL ANALYSIS It`s not secret on the Street that shares of APP have been sinking to new lows this year – and we`ll get to why later. What`s important for traders to notice is APP`s history of Breakout Rallies after it has consolidated at lows.

As you can see from the chart below, each breakout rally (indicated by the purple circles) was preceded by periods of consolidation at it`s lows. With APP now consolidating at its ALL-TIME LOW, it could be only a matter of time before we a new reversal.

Traders will also note just how completely “Oversold” APP is by using our RSI indicator. However, looking at RSI, it looks to be in the midst of a reversal as buying momentum has returned. Our MACD is our most telling indicator with the line and signal about to cross into BULLISH DIVERGENCE.

From a completely technical perspective, a Trend Reversal looks IMMINENT! So why did APP Decline to begin with Call it growing pains – especially for a company that has grown so fast. A string of late filings, lawsuits, higher cotton prices, the loss of 1500 illegal workers slowing down operations, and more may have hurt investor confidence in this fleeting brand. Most of all, in 2010 revenues declined, and total debts rose to $120 million, and the company was in danger of defaulting on a $80-million loan from British-based Lion Capital.

CEO Dov Charney commented, Were in the early stage of our development.” Having only been retailing since 2003. “Theres a lot of maturing thats going to take place in terms of the customers understanding of who we are and our own ability to operate in a fully efficient manner.

Couple that with substantial [7]short interest and some funds pulling out their holdings of the company, 2010 was certainly a difficult year for APP.

Many believe the “hipster” trend may be on the wane which caused a slight decrease in sales for 2010. But, none of this has stopped APP from being one of the most innovative brands today…and they have a solution for this…

So what could cause a New Breakout Rally Technicals aside….Simply put, REVENUES. And with a recent slew of news last week in which APP reported [8]Improved Monthly Retail Performance and [9]INCREASED 4th QUARTER SALES, APP could be primed to make an Epic Comeback here! APP announced this week that its total net sales in the fourth quarter are up 7%. On a quarter-to-quarter basis through Nov. 30, comparable sales increased 6%, which included a 5% increase in sales at retail stores and a 16% jump in online sales, according to the Los Angeles-based clothier. Wholesale net sales were flat, quarter-to-quarter.

“We are pleased with the momentum that is building in our core businesses,” said Dov Charney, chairman and CEO. “Our retail channels, both in store and online, are seeing sales growth, indicating a revitalized connection to our customer. We are excited about this trend. We feel it is long-lasting, and it is one we can meaningfully build upon.” American Apparel said comparable sales increased 10% in November, with a 7% rise in retail store sales and a 32% increase in online sales. In October, comparable sales jumped 4%, including a 3% rise from retail stores and a 6% rise in online sales.

Says Charney: “Other positive signs include improved efficiency at our manufacturing facilities, stabilization of world cotton prices and improved profitability at our average retail store.” American Apparel, which reports annual North American ad specialty sales of $89 million, ranks as the 14th-largest supplier in the industry.

And lets not forget that there are still MANY big institutions heavily vested in APP [10][see here]. And while revenues may have dropped in 2010, it was slight and its hard to write off any company that still books over a HALF-BILLION in sales revenue per year.

Much of this revenue has come from APP`s strong internet presence which recently expanded by [11]partnering up with eBay earlier this year.

And yet the company is still expanding to high value locations recently announcing the opening of a [12]new store in Galaries Lafayette in Lille, France – one of the most renowned international department stores.

And how is APP combating those who believe the “hipster” fad they are known for is waning They`re agreeing! As CEO Dov Charney recently claimed “hipster is over”, the company plans to venture into a more “prep” and accessible look putting them in the same arena as JCrew, Abercrombie, and American Eagle – while still maintaining their cutting edge designs and aggressive marketing they are known for.

APP already has the retail locations, the name-value, and the infrastructure to make this happen.

In the past 12 months, we have executed on our strategic plan, improved sales and financial performance and enhanced our financial flexibility, There is just so much upside here on APP at this bottomed level that its simply hard to ignore the mere 55 cent price tag! We`re calling it here folks! APP is on alert for TOMORROW.

Happy Trading! [13]Stocksgonewild.com Disclaimer: [14]http://www.stocksgonewild.com/disclaimer This email and the content provided is intended for commercial advertisement purposes only. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our site, or joining our e-mail list. PLEASE NOTE: Stocksgonewild.com employees are not registered as an Investment Advisor or Investment Analyst in any jurisdiction whatsoever. This is not an independent and unbiased newsletter. Full disclaimer can be read at [15]http://www.stocksgonewild.com/disclaimer. Release of Liability: Through use of this website/newsletter viewing or using you agree to hold Stocksgonewild.com, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Stocksgonewild.com`s affiliates may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. This may occur anytime before, during or after Stockgonewild`s advertisement efforts. Any opinions expressed are subject to change without notice. Stocksgonewild.com encourages readers and investors to supplement the information in these reports with independent research and other pro advice. All information on featured companies is provided by the companies profiled, through their website or is available from public sources and Stocksgonewild.com makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies.

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