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Topic: Growth Stocks

AEROPOSTALE INC. $0.04

AEROPOSTALE INC. $0.04 (symbol AROPQ on the U.S. over-the-counter market; TSINetwork Rating: Speculative) (646-485-5410; www.aeropostale.com; Shares outstanding: 80.0 million; Market cap: $2.5 million; No dividends paid) has delisted from the New York exchange and filed for Chapter 11 bankruptcy protection.

The company has suffered along with many other retailers that focus on the teen market such as Abercrombie & Fitch and American Eagle. Declining mall traffic and the shift in customer spending from clothing to technology, such as cell phones and streaming media, have hurt sales.

Aeropostale has also faced major competition from “fast-fashion” and off-price retailers. They continue to pull away teen customers with cheap, yet stylish goods. These rivals include H&M and Forever 21.

Aeropostale’s bankruptcy will likely leave little, if any, value for current shareholders. The stock is a sell.

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