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Why American Apparel Could Be Good For Day Traders

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Why American Apparel Could Be Good For Day Traders

Ann Logue was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Logue is the author of "Day Trading For Dummies." She holds a B.A. in economics from Northwestern University, an MBA with concentrations in finance and accounting from the University Chicago, and also holds the Chartered Financial Analyst (CFA) designation.

Logue discussed trading shares of struggling teen-retailer American Apparel Inc (NYSE: APP).

The trading pro noted that recently ousted CEO Dov Charney is "still fighting" to regain control of the company by teaming up with various private equity firms to take the company private.

"That's one reason why I like the stock for day traders," Logue said. "It's low priced and there is a lot of whacky news that keeps coming out and that creates a lot more activity."

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Logue continued that in the case of American Apparel there is more news releases than just the regularly scheduled quarterly prints. Reports surrounding holiday sales or fashion trends also creates opportunities for traders, outside of the Charney-related headlines.

Naturally, notable headlines typically result in a spike in volume, offering traders better entry and exit opportunities.

"American Apparel is still in operations," Logue felt necessary to remind traders. "Longer-term, it is a company that will probably emerge from all of this."

Logue also suggested American Apparel could prove to be an excellent acquisition choice but would have to resolve its ownership disputes.

"If you are a day trader, that gives you stuff to hang on to," she concluded.

Posted-In: #PreMarket Prep Ann Logue Day Trading for Dummies Dennis Dick Dov CharneyAnalyst Color Long Ideas Trading Ideas Best of Benzinga

 

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