Tag - Hgg

The Russell 2000 (NYSE: IWM) posted a gain for the first time in 2008 as most of the major U.S. indices ended a turbulent session in positive territory. The small-cap index climbed 2.35 points, or 0.33%, to 723.95. The Dow Jones Industrial Average (INDU) advanced 27.31 points, or 0.21%, to 12,827.49.

On a year-to-date basis, the Russell 2000 has lost 5.49%, while the Dow is down 3.30% and the S&P 500 has retreated 3.55%.

Small-cap stocks went on a rollercoaster ride that ended with a late-session rally that pushed the index into the green. Equities started the day higher, then fell abruptly after about 30 minutes and bounced around for the remainder of trading.

With no major news releases scheduled for today, investors turned their attention to future policy actions aimed at improving the U.S. economy and preventing a recession.

“The housing downturn and credit disruption will weigh on our economy and impose a penalty on our economic growth,” Treasury secretary Henry Paulson said in a speech to the New York Society of Securities Analysts this afternoon. “We will likely have further indications of slower growth in the weeks and months ahead.”

However, Paulson did not mention any new measures the Bush administration is planning to keep the economy moving forward and reiterated his belief that there will be no recession.

“While growth looks to have slowed considerably in the last part of 2007, our economy remains resilient and I expect it to continue to grow,” he said.

Also addressing the economy was President Bush, who called on the U.S. Congress to make some of his income tax cuts permanent and urged the passing of a number of housing-related proposals.

American consumers are in love with cutting-edge electronics and appliances to enhance their lifestyles. Witness the crowds that piled into stores at the wee hours of Nov. 23, “Black Friday,” through closing time on Christmas Eve.

Heightening the demand for big-screen, flat-panel televisions is the coming age of high-definition television and the switch to digital from analog signals in February 2009.

Despite the potential potholes in a field crowded with some better-known competitors, Midwest chain hhgregg, Inc. (NYSE: HGG) decided to make the leap and became a public company last summer.

The competition among big-box retailers is intense, forcing stores to slice their profit margins razor thin. In addition to sector leaders Best Buy Co., Inc. (NYSE: BBY) and Circuit City Stores, Inc. (NYSE: CC), along with home-improvement chains like The Home Depot, Inc. (NYSE: HD) and Lowe’s Companies, Inc. (NYSE: LOW), there are thousands of independent retailers that are struggling to survive.

For hhgregg, it was a long journey to the New York Stock Exchange for a family-operated company that began selling appliances in its hometown of Indianapolis in 1955. Not limiting its product mix to what can be found elsewhere, hhgregg targets customers who want competitive prices on higher-end goods, ranging from electronics and appliances to office equipment and Serta bedding.

Now a chain of 84 stores, hhgregg reported $1.1 billion in sales, earnings per share of $0.73 and same-store sales growth of 5.5% for its 2007 fiscal year. Unlike many other retailers, hhgregg boasts a mostly full-time sales force that works on commission.

As a result, analysts covering hhgregg mostly offer favorable opinions about its potential. In a Thomson Financial tally of six analysts, five have hhgregg at “buy” or “strong buy,” with a median price target of $19.25. On Thursday, hhgregg closed at $13.41.