OtherStocks

***** hhgregg, Inc. *****

Posted on July 17th, 2012 · Other Stocks

***** hhgregg, Inc. *****

I think I got an interesting stock play for you guys…hhgregg, Inc. (NASDAQ: HGG– B-$6.97 A-$6.98).

hhgregg, Inc. is a specialty retailer of home appliances, televisions, computers, consumer electronics and related services. As of July 17, 2012 the Company owned/operated 212 stores in 17 states. Not sure on the exact number, in the past year or so, hhgregg has opened a “ton” of stores in the South Florida area. hhgregg’s headquarters are in Indiana.

I know- I know- I know- that Circuit City went in the crapper and that Best Buy seems to be dying on the vine…and that Amazon is eating everyone’s lunch. Is Jeff Eats a glutton for punishment…or is he a clever sly old investment fox?

During the past 52-weeks hhgregg, Inc. has traded between $6.97-$16.65.

Trust me, I’ve been in a few of the local South Florida stores and I know that they look like (in my opinon, anyway) something right out of the late Andy Griffith’s “Mayberry” tv-show.

Just call it an educated guess, but I think based on its financial condition/business model that the Street is just trading this stock way too low…Yes! and I do know, that Best Buy is seemingly dying on the vine and that folks go into stores like hhgregg- check models/prices and then buy the same item online from Amazon for less money and no sales tax.

Do your own DUE DILIGENCE.

7 Comments to “***** hhgregg, Inc. *****”

  1. Larry G. says...

    Jeff, these guys are on a tear opening new stores. cant quite figure out why? best buy is getting killed and amazon is getting bigger. what goes hhgreg see that the mkt doesnt see?

  2. Carleton says...

    No

  3. scott says...

    no way Jose

  4. Bobby J. says...

    Jeff Eats:
    I was in the HHGREGG store which recently opened on 441 and Glades Rd. in Boca. Not very impressed with its bare bones setup. As you probably know, Best Buy is right across the street.
    From reading I see that HHGREGG in recent months has been opening stores like crazy all over the United States. You would think that the guys running the Company would know all about Amazon’s success and Best Buy’s problems. Maybe they see something that I don’t, but I really don’t see too bright a future for tv, video, appliance retailers in the big box market.

  5. PHIL PHILLIPS says...

    Sorry Jeff don’t see this one happening.

  6. KILROY ROBBINS says...

    The box box electronic stores are in the crapper. TVs are so cheap that they can’t make anything on selling them. In addition people “shop” in the store get all of model and info and then go home and buy it cheaper on line from Amazon. Most on line vendors dont collect sales tax so that also hurts the big box stores.
    So for right now I dont see HGG being a winner.
    BUT, I understand that Congress may pass a law which required all on line merchants to collect sales tax. If that happens that could be a game changer and help the big boxes.
    HGG recently reduced earnings forecast. Nothing terrible but it cost the stock almost 5 points in one day.
    At its current 6.97 it may be worth throwinga few bucks at but its a risky bet.

  7. ZELLMAN says...

    Jeff,
    HGG is trading right now at $18.35.
    Great call.

Leave a Comment