Big Day for American Apparel (APP)

American Apparel — the cotton-happy clothing company — has had more than its fair share of troubles. Today’s earnings report could shed some light on the company future.

American Apparel Inc. (AMEX:APP): The cotton-happy clothing company with factories in the great U-S-of-A has had more than its fair share of troubles. They bleed cash like an ATM, and they’ve been hit hard by the Great Recession. Hipsters, after all, can’t afford high-quality cotton when they’re not getting tipped at Starbucks. The company’s had to tighten the drawstrings on their sweatpants and beg for cash (and loan extensions) over and over again. Its gotten so bad, that the stock’s right around its all-time lows. Read: people think they might go bankrupt. Analysts are predicting a loss of .22 cents per share. That’s more than $15 million. Expect lots of volatility either way. The stock was up 8 percent on Friday. If the stock beats expectations, expect a temporary pop. Sell now, and buy back in a week. No one sees a profit in their future anytime soon — and that likely means prices will remain depressed for some time to come.

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