Stock Analysis: Aeropostale (ARO)

aeropostale_logo2Stock Analysis on the brand Aeropostale (ARO)
Date of Analysis: 3rd July 2014
Last Updated on: Same as above date
Current Price: $3.46


Fundamental Analysis

Intrinsic Value (How much it’s worth based on it’s financial records): $3.48

The intrinsic value calculation for this stock was a little challenging due to its unstable financial records. The financial fundamental records on this company isn’t very strong at all. We try to be conservative when calculating its intrinsic value.

Technical Analysis

The chart below shows a pattern that we spotted on the weekly chart. This harmonic pattern is called the bullish butterfly. So we’re expecting the stock to go up.

Bullish Butterfly on Weekly
Bullish Butterfly on the Weekly Chart

 

Here’s a prediction of where the stock might increase to. Potentially to $12.15 and to $14.24

ARO Prediction
ARO Prediction to go up

Summary:

The price of where it is now is ideal. Good to BUY where it is. Should not go below $3.31, otherwise further confirmation needed for this harmonic pattern to work.

Buy now and ride it to $12.15 or to $14.24.

 

Disclaimer: Readers are advised to practice their own due diligence before making any decisions. The reader understands the risks involved in trading.

Additional Notes: If you would like us to analyze any other stocks, feel free to drop us a note over at our contact page. Do note that we do not analyze IPOs due to insufficient financial data. Stocks with 5 to 10 years history are ideal (10 years would be even better).

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