Wednesday, May 5, 2010

HSN Picked as Stock that Could Beat the Market

Via Daily Finance

Investment guru Mario Gabelli has proved it often enough: With adequate research and experience, one can beat the stock market. And he has the numbers to prove it.

Every quarter since Jan. 31, 2006, Gabelli & Co.'s "Focus Five" team picks five stocks that trade at a relative discount to their intrinsic value and have identifiable near-term catalysts that should make them big winners. And true enough, they were not only big winners but also beat the market.

...HSN is still in the early stages of renewed sales growth, and the company's experienced management team should be able to improve profit margins substantially, says Miller. Investors are now focused on the standstill agreement HSN has with Liberty Media, which owns a 32% stake. The standstill pact expires in August, and Liberty could opt to raise its holdings in HSN. Miller believes a combination of HSN and rival QVC has strategic advantages and, as a result, he notes that HSN, which is now trading at $30 a share, is attractive based on current market dynamics..

See full article from DailyFinance:

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