Financial Targets Keep Moving at Ann Taylor

One thing's for sure: You can't fault Ann Taylor (ANN Quote) for keeping investors in the dark.

The women's apparel chain boosted its financial guidance after the close of trading Wednesday, triggering a rally Thursday that sent shares to a 52-week high. The rise in first-quarter earnings targets marked the seventh time in just over a year that New York-based Ann Taylor has changed its financial guidance.

Of course, following the collapse of Enron, investors have made it clear they prefer more information to less. But Ann Taylor's record of frequently revising its targets, along with chatter about the quality of its earnings, suggests investors might do well to hold off rushing into the stock right now. ...