hhgregg, Inc. (HGG)
The Company is a retailer of video products, brand name appliances, audio products and accessories and currently operates stores in Ohio, Indiana, Georgia, Tennessee, Kentucky, North Carolina, South Carolina and Alabama.
Recs
Don't like it. It's just that simple.
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Looks promising
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OK, so it's not a great value by my estimate. Basically I'm putting it here so I can watch it. The company can fill a niche left void when Circuit City's sales staff went sans commission. There is a market for an educated and motivated sales staff, electronics have never been in more demand, and they have an aggressive (overly aggressive?) growth strategy. If they can provide controlled, intelligent growth while working their current business model, then this stock's a buy.
Recs
This company has been present in the midwest for a long time. They went public to reorganize their debt and focus on the big picture. This company prides itself in customer satisfaction and i strongly believe there is room in their market to pick up on customers who want a sales rep that is knowledgable and well trained. This company competes with Best Buy and Circuit City competitively in the midwest. I have no reason to believe on a large scale they won't be able to do the same.
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Taking market share and building new stores.
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Agressive growth strategy combined with proven track record.
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HHGregg has had customer service issues since it's inception and the demise of SunTV. This stock should be beaten with a wet noodle, oops it is a wet noodle.
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Many reasons.
1. Too many anti-takeover clauses in their prospectus. Which means that they will try to maintain control on the company no matter how crappy they are doing. (I am a firm believer in share-holder activism).
2. Currently their P/E ratio is 19. They are also only hitting the midwest. Compared with Best Buy's 17 this stock is overpriced.
3. Seem to have declining net-income in their previous years. This is despite revenue increases of ~10% annually. This is why I like share-holder activism.
4. I dont like the electronic retailer industry in general. Why would anyone really care whether they are at Best Buy or Circuit City etc. It is purely a buyer's market and these guys dont do anything much beyond what Best Buy or Circuit City do.

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