Good News for hhg?

HGG is a stock I bought during the bloodbath that was this summer. They went public this summer and no one seemed to notice as it was sub prime this CDO that. My take on them is that they were home entertainment for well-heeled people, a step or two above Best Buy. They compete on service and help you customize and install your system. I felt this was a decent "moat" and besides they were cheap and on the list.

Of course they promptly dropped after I bought them from $13.48 to as low as $10.50. They have rallied of late and are at $14.80 right now (would have been sweet to have bought at $10.50!) and announced their earnings (hhgregg's Second-Quarter Comparable Store Sales Increase 8.9%) this morning. Note their headline was positive while AP was negative (Hhgregg Swings to 2Q Loss).

Ah, the headline games! They had a "loss" because they paid down their debt early. I don't view that as "bad" though not sure what that'll do to their MFI ratios. The numbers were strong and they increased guidance by about 6% for 2008.

We'll see how the market reacts. I'll have more earnings excitement today and tomorrow and laggards USHS and CHCG announce. Cross your fingers. BTW, with yesterday's rally, I have moved ever so slightly "above the green line".