George Soros’ Ties to Penny Stock American Apparel (APP)

At the end of 2011, we profiled and alerted subscribers about one of the more controversial penny stocks to watch. Free penny stock picks from other websites are a dime a dozen but good penny stocks like the ones we notify subscribers about make putting an alert on your penny stock list worth the effort. To prove it once again, American Apparel, Inc. (NYSE Amex: APP) has gained over 71% since AimHighProfits alerted subscribers as one of the penny stocks on the rise three months ago.

From the December 14th alert to January 11th, the stock nearly doubled but has held its gain of no less than 25% for those who invest in penny stocks long. The once written off for sure bankruptcy, debt-heavy, controversial, provocative advertiser and manufacturer of American-made clothing chain APP gained 21.47% yesterday to close under its high for the day of 0.95 at 0.91 on nearly 5X its 3-Month Average Volume.

Reports began circulating that equally controversial contrarian investor, George Soros, was considering bailing them out by offering a credit line to the struggling retailer. Subscribe to get our next alert FREE.

APP Stock Snap Shot:

Market Cap : 95.28M
Price/Sales (ttm): 0.18
Price/Book (mrq): 1.61

APP Stock Price History:

52-Week High (Apr 26, 2011): 1.69
52-Week Low (Dec 14, 2011): 0.52
5-Day Moving Average: 0.78
10-Day Moving Average: 0.76
20-Day Moving Average: 0.75
50-Day Moving Average: 0.76
200-Day Moving Average: 0.79

APP Share Statistics:

Avg Vol (3 month): 382,490
Avg Vol (10 day): 376,217
Shares Outstanding: 104.59M
Float: 54.36M
% Held by Insiders: 48.69%
Shares Short (as of Feb 29, 2012): 4.67M
Short Ratio (as of Feb 29, 2012): 17.20

APP Stock Chart Since the December 14, 2011 Alert:

RSI, MACD and Full Stochastics are all trending bullish for APP.

George Soros, the billionaire octogenarian who, like APP’s always controversial CEO, Dov Charney, has been tied up in a web of lawsuits with young, beautiful women lately.

If his image follows his money, the great investor will be backing American Apparel who is currently negotiating to extend a credit line worth as much as $80 million from Crystal Financial. Crystal Financial, a Boston-based firm that heralds Soros’ hedge fund as its lead investor, will immediately replace and expand a $75 million revolving credit line from Bank of America that matures in July.

Bottom Line: Add APP to your stock watch list (again) immediately. If the credit line is secured this week, expect to see APP take another surge towards the $1 level and, perhaps, hold that level now that it has been able to extend its credit at a much cheaper interest rate.

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