Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, September 20, 2013

Article Excerpt

AEROPOSTALE INC., $9.90, symbol ARO on New York, moved up over 15% this week on news that Sycamore Partners has taken a nearly 8% stake in the company. Sycamore is a New York-based private equity firm that specializes in consumer and retail investments. It has over $1 billion in capital under management. Earlier this year, Sycamore paid $600 million for Hot Topic, a U.S. teen retailer with over 800 mall-based stores; in December 2012, it made an unsuccessful $555-million bid for Billabong, the Australian surf wear company; and in early 2012, it bought Talbots, a struggling women’s wear chain, for about $400 million. It’s far from certain that Sycamore Partners will buy Aeropostale, and the firm has a reputation for not paying a big premium above current market prices. However, Sycamore’s involvement does highlight Aeropostale’s underlying value and turnaround potential. Aeropostale is still a hold. Please make sure you are logged in to your account to access these articles. Click here if you’ve…