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Subject:  American Eagle Date:  11/10/2007  10:38 AM
Author:  hheiserman Number:  1397 of 1817

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.

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