Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 12
Stock price: $22
Net cash: $3.54 (excludes contingent liabilities like leases, employee stock options)
EPS forecast for FYE 2/09: $2.14 you a forward P/E of 8x. Too darn cheap!

Here's the way I look at the situation:

Shares of American Eagle give buyers at today's price a 12% yield, which should grow at 10%-15% a year for the next several years.

Meanwhile, the 10-year Treasury yields 4.22%, with no future growth component.

The retailer's stock is a much better bargain than the government's bond.

To learn more about American Eagle, see my comments on this board from September.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.