Ann Taylor May Lose Flair

Veteran Wall Streeters know that when it comes to investing, past performance holds no guarantees for the future. That said, those contemplating buying shares of a streaky retail chain like Ann Taylor (ANN Quote) would do well to consider a little history.

Over the course of the last year, new Chief Executive Kay Krill has rescued Ann Taylor from a debilitating fashion whiff and transformed it back into one of the hottest clothing destinations for women. While a number of other specialty chains, like Gap (GPS Quote) and Limited Brands(LTD Quote), struggle to fix their own merchandise problems, Krill's performance has won plaudits on Wall Street and shares of Ann Taylor are reaching all-time highs.

Now, the question is whether investors who missed the company's turnaround should buy the stock while Ann Taylor is at the top of its game. At current levels, the shares look priced for perfection. And, while the company will probably continue to perform well in the near future, it has a long history of ups and downs. ...