Tuesday, January 18, 2011

Company on the rise

CWTR- Cold Water Creek Inc.

I feel strongly that by the end of this year that CWTR will prove to be a fantastic investment. They are working on paying down their debt as profits return in the retail industry.
They are at a great price of about $2.95, at the moment. Their market cap is under 300 million, which is great if a big investor takes notice.
Any sort of good news can have a dramatic effect on a smaller cap stock such as CWTR.
In checking the open interest for options on this stock, I found that there is strong interest for the $5 dollar calls. This bodes well for the long and short-term of the price. With the price being so low for a fairly strong company it deters short sellers, that otherwise would have driven the price down even lower.
I think 2011 will be the year that we see a good recovery from the financial mess that we all have endured as American citizens. A recovery will lead to more spending, and investor sentiment will go in the direction of BUY! BUY!
CWTR is one of the stocks that have not made a dramatic recovery yet. Reason being is because consumers have not fully returned to their pre-meltdown spending habits.
Time heals all wounds and the time for dramatic healing is near. In addition, to their retail stores, CWTR also owns spas, which will see a rise in sales.
All in all, I think this is a great company, with very limited downside, to own.

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