Clean Up on an Overreaction
In a classic overreaction, Abercrombie & Fitch (ANF) shares got pummeled last week, closing at $35.89 -- a 19-month low. Momentum players are long gone -- so I think it's better to be buying at this stage. Abercrombie has no net debt, it pays a 1.95% current yield and the shares are now offered at about 10.3x fiscal 2012's already-reduced estimate of $3.47 per share.
Management recently authorized a 10-million-share buyback and declared the normal $0.175 quarterly payout. The next ex-dividend date is Thursday, May 24. The last time Abercrombie got this cheap on an absolute price basis was during October of 2010. Buyers then saw the shares climb to $78.25 over the following 10 months....193 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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