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I'm long this stock since 11/07. Obviously it has taken quite a dive since then. Any investors out there more seasoned than I (which is probably most of you), please feel free to call me crazy or whatever, but here goes.

Since I'm down roughly 68% right now, and I don't see a turn around in the near future, any thoughts on selling now and re-purchasing shares back after 30 days in order to avoid the IRS wash sale rule and taking the capital loss in order to offset some tax liability?

Essentially, is it worth it and has anyone ever done this or is anyone contemplating it?

I just really don't see much upward movement possible between now and the end of December, seems like a pretty safe bet. Or is it so cheap right now that it's going to move higher due to bargain hunting?

Thanks

JR
A very foolish investor
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If you think the retail sector will rebound but you want to take advantage of losses for tax purposes then why not sell AEO and buy an equivalent retailer? This allows you to avoid the time risk of selling now and buying again in a month.

PP
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Yes, I was having similar thoughts. (recently sold AEO and bought ANF, perhaps there are better candidates than ANF though) The market is so volatile right now, alot could change in 30 days (of course, the price could drop and you might benefit from having not owned it during that time).
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I sold at $16 a few months ago and took my losses, decided to invest elsewhere, not in retail. Thanksgiving and Christmas are likely to be dire, where is the upward momentum going to come from in the short term. I see the share going into mid single digits - recovery hopefully in 2009.
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Probably so. I have to wonder though if there is a small, hardcore group of shoppers waiting for what they perceive to be the best prices. Perhaps they will swoop in and give a slight bump to retail sales estimates. That might spike AEO's price a little.

Hard call to make, no doubt. I'm still trying to come to grips with the idea that a company like AEO is paying a dividend yield of almost 5%. That's just not right <g>. I have to ponder the idea of a dividend cut.

Thanksgiving and Christmas are likely to be dire,
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