Eric Beder of Brean Capital wrote an interesting research report about American Apparel (APP). What caught my attention is his observation that despite the company almost collapsing in 2009-2010, its customers have never abandonned the company. He describes them as fanatically loyal and he labels the company one of the strongest brands in the consummer space.
The company has a strong emotional connection with its customers.
Now, let's look at Sears (SHLD) and JC Penney (JCP). Where are the fanatics? Nuf said.
Written by Michael Bigger. Follow me on Twitter and StockTwits.