By Dr. Paul Price of Market Shadows  

Nothing like a buyout offer to lift a stock higher.  The Street reports that private company Sycamore Partners might be looking to buy Aeropostale (ARO):

• Shares of Aeropostale (ARO +1.3%) spike after The Street reports, citing a source, that Sycamore Partners is looking to buy the retailer.
• Sycamore's move to take an 8% stake in ARO back in Sept. and the retailer's lackluster Q2 results and Q3 forecast echo the shake-out of Sycamore's acquisition of Talbots.

Excerpt:

"NEW YORK (TheStreet) - Private equity firm Sycamore Partners LLC will use the same strategy in targeting teen apparel retailer Aeropostale (ARO) as it did in acquiring women's apparel retailer Talbots (TLB).

"The private equity firm revealed in a regulatory filing Sept. 17, that it had taken a nearly 8% activist stake in New York-based Aeropostale, picking up 6.25 million shares for $54 million.

"But unlike activist investors, who would push for changes at the company, Sycamore is ultimately looking to buy, someone close to the situation said. Over the past several years, Aeropostale has been pegged as a private equity takeover target by analysts and in news reports... 

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Market Shadows' Virtual Put Selling Portfolio is short ARO Jan. 2015 puts. A buyout would be a positive event for us.

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