Economics 101

The best economic advice that you will ever receive - maybe.

Monday, January 15, 2007

Circuit City? A buy? A growth play?

Circuit City (CC) has made one huge headline lately:
Circuit City to roll out new prototype store-courtesy of CNN Money

Circuit City is back and I think it is a buy. If you think that this year may not be the time, you might be correct. But according to growth estimates, next year holds a great year of growth for CC. I also have another very very amazing buy for investors. I still need to do more research, but I think that Dominion Resources Black Warrior Trust (DOM) is one of the best buys on Wall Street. Right now, they are at a 52 week low and they give a 12% annual dividend. What is to lose? You have to invest some cash into these guys. I also have another pick, and it is Catapult Communications (CATT). Now I know I'm always reminding you about the PEG ratio and how it shouldn't be over 2.0 and this stock has a PEG ratio of 2.9 but there is a good story behind it. It is nearly at a 52-week low and check out its growth rate for the next quarter and this year. If you're a conservative investor, you can wait until next quarter to buy Catapult Comm. but I give you the seal of approval to buy it now. I also want you to buy TETRA Technologies (TTI). These guys have a PEG ratio of 0.55 and check out their growth rates. They are bound to go up and I give them a triple BUY!!! They were recently upgraded on Jan. 5 by Matrix Research from Hold to Buy. They also have a one year target of $35.14. I think that potentially The Children's Place Retail Stores (PLCE) will do well. Right now it is at $58 and has a price target of $78. Imagine how much could be made even if they were $8 wrong. Here is a growth play for you, Mothers Work (MWRK). In the next 2 quarters this stock will go up a combined 833%. This stock is going to go up. They were recently updated on Jan. 5 as well. I also want to give you a stock to watch, Multimedia Games (MGAM). Next year, they are supposed to grow a whopping 2,400%.

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