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Their back to school line got no respect from major shareholder La Senza Corp. Wet Seal's biggest shareholder stated its intent to part with 3.1 milion shares --its entire stake.

The news was not received kindly by the street and shares of Wet Seal dropped 8.2% to $4.95 at 4 PM on Friday after the news. As of today, they continue to slide down to $4.36 getting close to the 52 week low of $3.42 and miles away from the 52 week high of $12.76.

This all comes at a bad time as the co has just launched its much anticipated back to school line with product in the stores for about a week. One analyst, Whitaker Securities, has actually downgraded them to sell--not something you see much of on Wall Street.

Will the back to school line save this poor unfortunate and floundering sea mammal? Stay tuned.

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No. of Recommendations: 2
Hi KitKat,

I knew about this because up here in the Frozen Northern Tundra (Actually it was 87F in Vancouver today!) I was looking at La Senza which has been horribly affected by it's Wet Seal investment.

I love it when an analyst downgrades to a Sell AFTER the stock has fallen from $12+ to under $5 - Where were they at $12+???

My mind says that it would be a good idea to track Wet Seal because if it doesn't bankrupt there may be a turnaround someday. Might be a year or two away though!

Caution: NOT a buy rec!!

La Senza is probably the better buy because it's a Canuck Mermaid Stock :-)

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