Out Fox The $treet

Recently, analyst firm Jefferies  listed several retail stocks as top leverage buyout, or LBO, candidates. Basically, the analysts think the stocks have gotten so cheap that private equity will take them private via borrowing debt to restructure and hopefully create value. Jefferies thinks that Aeropostale ( NYSE: ARO     ) , American Eagle Outfitters ( NYSE: AEO     ) , and Body Central  provide interesting values with high internal rate of return, or IRR, and limited debt. The only problem is that the teen retail segment has become highly competitive, with numerous players that can easily compete online with cloud software tools and social media advertising. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

After nearly doubling over the last 15 months, Urban Outfitters (NASDAQ: URBN ) appears no bargain anymore. The stock continues to trade at all time highs after reporting strong sales numbers yet the rebound appears overdone. The specialty retail company operates under the Anthropologie, BHLDN, Free People, Terrain, and Urban Outfitters brands with nearly 500 stores mostly in the United States and Canada. It reported record holiday sales for the two more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Last Thursday morning, The Gap, Inc. (GPS) reported August 2012 net sales that showed surging comp sales for all of the domestic brands. This news sent the stock surging to a new 52-week high of $36.60 before closing at $36.11. The company is a leading global specialty retailer offering clothing, accessories, and personal care products under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. With the stock now up 100% for the year, many investors wonder when will the rally end and what could've predicted these gains. At Stone Fox Capital, the one predictive reason all year continued to be the huge Net Payout Yields (NPY). The company had consistently been in the top of the monthly NPY list , telling investors to stay invested. Read the full article at Seeking Alpha. Disclosure: Long GPS. Please review the disclaimer page for more details.