practical stock investing -Abercrombie & Fitch yes or no?
5/13/2009 The biggest piece of practical stock investing advice that I can give you, is to think about whether or not a company is going out of style due to market conditions. In other words one of the reasons in my opinion that Winnebago Industries is having so many problems is that gas prices keep going up in general, and people due to the market price of gas don’t want to spend that much on driving a big vehicle on the road. I have been wondering for awhile now if changing fashions or markets are somehow affecting ANF Abercrombie & Fitch. Is the company getting out of style? Are people now shopping at other stores that are considered more fashionable unlike ANF? Personally for its size I like ANF as a stock because I think that it still holds value today. I think for years they have had the ability to make good profit margins because they can charge more for their name, which is a great asset for any company to have. The question is, have other companies like Aeropostale gotten in the way of ANF Abercrombie & Fitch making money? Are other companies like the Buckle becoming more popular then this decades’ old retailer? The thing that we as investors must remember about this company is that ANF has been in the market for many years. As a company and they have always survived and prospered in the long run despite varying market conditions. Perhaps they have something more than just another name in the market that they represent?practical stock investing - look at the fundamentals of companies-Looking at the company fundamentally for practical stock investing It looks as though the company is still making fairly decent earnings though their earnings are down as of the date of this article compared to what they were a couple years ago. Their prices to earnings are low indicating that they may be a very good value buy for the long term. Their Liabilities compared to their assets are very low which is always even according to Warren Buffet a good sign that the company will prosper in the future becoming one of the good stocks on the market. -Final note I think that for the long run Abercrombie & Fitch will hold it’s own considering that it has been around for years; people believe that Abercrombie & Fitch is a place of value and therefore I think a lot of people don’t just come there for it’s name. The real question to consumers and investors alike is; what do you think? - - comment bellow
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