Welcome to the very first Checklist Investor stock blog entry. The purpose of this Blog is to discuss specific stocks and investing strategies. Your comments are welcome.
Our most recent stock of the month has done quite well. It is very exciting to see a stock jump 40% in the weeks following its selection as the Stock of the Month. MOVI hit a high of $7.50 from a $5.00 price on the report date. In such a small cap stock, any mutual fund / hedge fund buying can cause significant price moves. This is what I believe has happened over the past weeks. I have no insight into who is doing the buying, but believe it is driven by the improving fundamentals of the company, not takeover speculation.
The industry trends are still in Movie Gallery’s favor, and it is possible they will report positive same store sales for 2Q 2006. This would be a tremendous boost to the company, and show the market that the downturn experienced over the past 4 quarters was primarily product related.
