American Apparel, Inc. (AMEX: APP) is getting crushed. Again. We are seeing a second trading day of high stock volume after the Tuesday disclosure of a “going concern†where it might not be able to meet requirements and obligations inside its credit pact. The company also disclosed that U.S. AG is looking into the circumstances of the resignation of Deloitte & Touche as auditor, as is the SEC.
The Wednesday drop is nearly the same as Tuesday. Yesterday saw 2,550,600 shares trade hands and the stock closed down $0.36 at $1.03. With average volume at 700,000 shares, this was a 3X volume alert. We have another 3X volume alert today. We have shares down $0.20 at $0.81 on more than 2.4 million shares already and the time is now only 11:05 AM EST. This could trade more than 5 million shares at this pace, or more if the trading slowdown from 11 to 2:30 is not seen.
Shares hit a new 52-week low of $0.72 this morning. Actually, that is an all-time low.
JON C. OGG
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