Thursday, August 24, 2006

Retail Apparel Blues And More

One of my larger positions, American Eagle Outfitters (AEOS), suffered a three and a half percent hit today. Looks like almost all of the the major apparel retailers took a hit today due to the horrible quarter reported by Chico's FAS (CHS). Chico's got knocked down by 25% and took down the entire sector.

In better news, Constellation Brands (STZ) and First Marblehead (FMD), moved up nicely. And, also it's looking like that recent Student Loan (STU) add-on is paying off. Was I really so lucky as to have bought it at the bottom?

New to the watch list: Nuance Communications (NUAN). Recently, a large number of shares was purchased by William Janeway of Warburg Pincus, a private equity management/venture capital firm. Warburg has taken a number of companies to an IPO in its history... including LG Card, Level One Communications, BEA Systems, and Avaya.

Nuance Communications is involved in speech recognition solutions, and it also has an imaging division. I'm sure you've all heard of Omnipage and possibly of the Dragon Naturally Speaking products. Anyway, keep it on your watch as a potential speculative play.

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