hot stock - Hot Topic inc
| Stock | Management | Value | Overall Rating-Date Of Article | | hott Hot Topic Inc A hot stock? | 7 out of 10 | 6 out of 10 | 6 out of 10 |
5/9/2009A popular store among teens these days is Hot Topic which seems to be a hot stock from where it was even a year ago to the date of this article. The question that I ask myself about this interesting small cap stock is what exactly is keeping it afloat? It is true that the styles they represent i.e. what’s known as Goth have of course been popular for awhile now, that coupled with the fact that they are in malls which appeal to rich, middle class, and employed people also makes it even more attractive investment to investors looking for safer markets. All these advantages a smaller company like Hot Topic can boast, but how is it they can get away with making all this money in a down market and a recession? The answer I think is held in an old but awesome rule in business and that is “the bigger you are the harder you fall”. If you are a small business you have more options about how you want to operate your business. If you are a large institution like a larger bank, then you are more susceptible to the economy collapsing.
This is not to say that smaller companies can’t be hurt or even go out of business in a bad economy, but rather smaller businesses have the ability to change what they do faster then their larger counterparts. Smaller companies can change faster and because of that it is easier for them to adapt to changing market conditions. As far as Hot Topic goes I am a little uncertain about this stock at this time. I think that their company could continue to make money with the styles and music that it represents; it’s also possible that people could start to treat it like a fad and then the company could fade out no longer being a hot stock. Hot Topic stock is a stock that in my opinion will simply have to be a stock that I remain 50 50 on because as many people here know I am usually not the type that remains 50 50 on anything about investing in the stock market or finding good stocks. As far as Hot Topic stock goes I think it could go either way at this point. What do you think?
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