American Apparel Inc (OTCMKTS:APPCQ) Trading Outlook
American Apparel Inc has stated they will continue to manufacture in the USA despite the corporate Bankruptcy, competitors like Miami Bikini Shop, have continued to build manufacturing assets outside the country but have still held on to high quality production.
Lululemon, Victoria’s Secret and the majority of clothing brands have always produced outside the USA, the American Apparel decision is a mstke and will lead to the total collapse of the company.
At some stage the retail assets of American Apparel may attract interest, but the USA manufacturing assets will not.
AMERICAN APPAREL closed down -0.002 at 0.028. Volume was 251% above average (trending) and Bollinger Bands were 5% wider than normal.
Open High Low Close Volume___
0.030 0.033 0.027 0.028 4,675,093
Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.11 0.17 0.56
Volatility: 739 411 221
Volume: 2,488,480 1,452,523 1,275,312
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
AMERICAN APPAREL is currently 94.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume out of APPCQ.PK (bearish). Our trend forecasting oscillators are currently bearish on APPCQ.PK and have had this outlook for the last 8 periods. Our momentum oscillator is currently indicating that APPCQ.PK is currently in an oversold condition.
American Apparel, Inc., incorporated on July 22, 2005, is a vertically integrated manufacturer, distributor and retailer of branded fashions basic apparel and accessories for women, men, children and babies. As of February 28, 2014, the Company had operated 246 retail stores in 20 countries. The Company also operates an e-commerce site that serves over 50 countries around the world at www.americanapparel.com. In addition, the Company operates a lending wholesale business that supplies T-shirts and other casual wear to distributors and screen printers. The Company operates in four segments: U.S. Wholesale, U.S. Retail, Canada and International.
The U.S. Wholesale segment consists of the Company’s wholesale operations of undecorated apparel products sold to distributors and third-party screen printers in the United States, as well as the Company’s online consumer sales in the United States. The U.S. Retail segment consists of its retail operations in the United States, which comprised 136 retail stores as of December 31, 2014. The Canada segment includes wholesale, retail and online consumer operations in Canada. As of December 31, 2014, the retail operations in the Canada segment comprised 31 retail stores. The International segment includes wholesale, retail, and online consumer operations outside of the United States and Canada. As of December 31, 2014, the retail operations in the International segment comprised 75 retail stores operating in 18 countries outside the United States and Canada. As of March 13, 2015, the Company operated 239 retail stores in 20 countries, including the United States, Canada, the United Kingdom, Australia, Austria, Belgium, Brazil, China, France, Germany, Ireland, Israel, Italy, Japan, Mexico, the Netherlands, South Korea Spain, Sweden and Switzerland.
The Company competes with Gildan Activewear, HanesBrands, Russell Athletic, Fruit of the Loom, The Gap, Urban Outfitters, H&M, Uniqlo and Forever 21.
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