Abercrombie & Fitch has plenty of problems both managerially and in its sector to be an interesting long term investment. But it is a volatile one, and perhaps set for a small technical run here, according to Gary Smith of Fox Business.
His argument is very Peter Lynchish, seeing lots of kids in the malls at his local ANF. I’m not sure I’d look for it to climb to 50 but somewhere in the mid 40s seems probable, and I’ve set my alert accordingly.
For the opposing view, and perhaps the Businessweek-as-contrarian indicator, there was a negative piece about the secular trends for ANF in Businessweek last month.