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Cameron -

Accountants like to say everything on the balance sheet is an estimate, except cash. Now, cash is also an estimate, it seems.

You ask good questions. But I do not have enough information about ARS's to speculate about the size of a writedown, if any. Plus, I think this credit squeeze is going to linger. So I want to see how things play out.

I pay attention to how management treats stockholders, and I note AEO does not have this press release http://biz.yahoo.com/ap/080229/american_eagle_auction_rate.html?.v=1&printer=1 in the press release section of its website http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-news&nyo=0. This omission bothers me.

For now, Wall Street isn't worried about AEO's ARS's, as the stock hasn't moved much. I prefer to wait on the sidelines until the situation is resolved, however.


Hewitt
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