Mea Culpa: Here’s One of My Worst Stock Calls, Aeropostale, Inc. (ARO)

On the other hand, let’s stay away from retail companies that are in even more perpetual states of failed turnaround than Aeropostale. Take Coldwater Creek Inc. (NASDAQ:CWTR) , which hasn’t been able to get itself together for years running. It recently reported worse-than-expected holiday numbers, and the retailer hasn’t been profitable on an annual basis since the year ended February 2007.

Putting failure into perspective
As much as I always feel bad and even embarrassed when I’ve made a rotten call or recommendation for investors, I try to nibble at crow while remembering that no investor is correct 100% of the time.

The hedge fund Thunderdome that’s surrounded Herbalife Ltd. (NYSE:HLF) recently provides a fine example. William Ackman, who has taken a short position, and Carl Icahn and Daniel Loeb, who either have long positions or are defending the company, are all highly respected investors, and they have opposing views regarding the stability of that company. One side will be right, and one side will be wrong.

Even the smartest guys (and gals) in the room won’t be perfect. None of us will be. We can just try to learn from our mistakes and keep on honing our investing skills with every stumble.

One of my lessons is simply refreshing my memory on how difficult retail turnarounds can be; this is something I already knew but failed to apply in this case. I admit I may have to ask for seconds of crow for saying investors shouldn’t sell right now and instead wait patiently for a turnaround. I’m going to keep a close eye and challenge myself to admit if it seems like Aeropostale’s beyond a reasonable chance at turnaround.

What do you think? Share your thoughts on Aeropostale’s future or your own less-stellar investing calls in the comments box below, and please be kind. Like I said, mea culpa.

The article Mea Culpa: Here’s One of My Worst Stock Calls originally appeared on Fool.com and is written by Alyce Lomax.

Alyce Lomax has no position in any stocks mentioned. The Motley Fool recommends The Buckle. The Motley Fool owns shares of Aeropostale and The Buckle and has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd..

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