Hot Topic, Inc. (HOTT)

Right now, this stock is priced historically relatively low. This is a company with very strong financials, and a business model that leaves them effectively with no serious competition. In theory, they are competing with other teen clothing retailers, as well as music retailers. In reality, though, they are serving a niche which no one else (aside from private stores that are increasingly few and far between) is serving, and which is not going to go away. There will always be a popular counterculture, and whatever that is, Hot Topic is going to be there selling to that market. People who think this company is a fad don't understand the store; there's a reason it's called Hot Topic and not the Goth Store or the Emo Store. So long as this company stays on their game, which I have no reason to believe they won't as they're very active in trying to keep on top of the cultural pulse, they have nothing to worry about. The only thing that's going to bring this stock down is investors who don't realize how clever of a business this is.

Attractive valuation at its current price; potential bottoming behavior. Keeping it on a short leash.