Volume Spike Investor

American Apparel, Inc. (AMEX: APP) is trading up 2% pre-market on strong same store sales data for August.  The apparel retailer is showing that its young adult retail trendy stores aren’t a flash in the pan.  The relatively new apparel retailer posted same store sales for August at +31% on a constant currency basis and posted +34% gains if you include the adjustments from currencies.   It also opened 16 new stores in August alone and has now opened 36 stores in 2008.

This is rarely a pre-market mover and could end up being an under the radar stock which traders often overlook.  The 2% gain as of 8:38 AM EST is only on 1,200 shares and we’d caution that since it is under-followed and not known by all that this can have a mind of its own.  But the raw numbers are very impressive considering the state of the economy.  How many chains can claim gains of more than 30% on same store sales or even total sales in today’s environment?

Its average daily volume is almost 550,000 shares and its 52-week trading range is $5.00 to $16.80.  This stock does now have stock options, although they are not actively traded and the open interest is light.

Jon C. Ogg
September 4, 2008