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Hedge Fund Trade Of The Week: Kirkland

Where’s the fast money finding opportunity? In this regular feature Anthony Scaramucci aka The Hedge reveals his latest greatest pick!

This week’s trade is Kirkland's; a specialty retailer of home decor operating approximately 289 stores in 29 states.

Check out the company’s chart as well as some of its stats:

Kirkland (KIRK)
Sector: Services
Industry: Retail (Specialty)
Market Cap: $238 million
Based in; Jackson, TN
52-week high: $25.38
52-week low: $10.62

Scaramucci selected this stock as his hedge fund trade of the week largely because he's crunched some numbers and believes the company is in the early chapters of a turnaround story. Take a look:

Trailing 52-week Period

20082009 2010
Comp Store Sales(13.3%) 3.6% 8.4%
Gross Profit Margin
28.70% 34.20%41.50%
Operating Margin (6.5%) 2.5% 11.6%
Source: Skybridge Capital

He also says Kirkland trades at a discount to peers. “If you strip out the cash it’s P/E is 5.4 times earning versus its rival Pier 1 which is trading about 8.5 times earnings. And it has negative net debt on its balance sheet.” In addition, he likes that value hedge funds such as Maverick and Tiger hold this stock.

Just how much upside may be in this stock? Scaramucci has a $23/share price target on it.

Click here to check out other Hedge Fund Trade Of The Week posts

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.



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Trader disclosure: On December 2, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
Joe Terranova Owns (FCX), (CMA), (UPL), (C), (PEP), (VRTS), (OXY), (GS), (POT), (AAPL), (NKE) and (OIH). Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT). Tim Seymour owns (AAPL), (BAC) and (F). Jon Najarian owns (AAPL), Is Short (AAPL) Calls. Jon Najarian owns (GS), Is Short (GS) Calls. Jon Najarian owns (JPM), Is Short (JPM) Calls. Jon Najarian owns (CME), Is Short (CME) Calls. Jon Najarian owns (TIF), Is Short (TIF) Calls. Jon Najarian owns (RIMM), Is Short (RIMM) Calls. Jon Najarian is long (AMZN) call spreads. Jon Najarian is long (IBM) call spreads. Jon Najarian is long (NFLX) call spreads. Jon Najarian is long (DE) call spreads. Jon Najarian is long (GT) calls. Jon Najarian is long (AA) calls. Jon Najarian is long (CMC) calls. Steve Cortes is short (XRT). Steve Cortes is long S&P 500. Steve Cortes is short (LVS). Steve Cortes is long (TSN). Steve Cortes is long USD vs. Mexican Peso, Australian Dollar, Euro. Steve Cortes is long U.S. 2-year Treasuries.

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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GUY ADAMI
Adami’s wife works at Merck

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GT)
Accounts Managed By Kanundrum Capital Own (DE)
Accounts Managed By Kanundrum Capital Own (AAPL)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (BG)
Accounts Managed By Kanundrum Capital Own (TBT)

SIMON BAKER
Baker Ave owns (AAPL) for clients
Baker Ave owns (C) for clients
Baker Ave owns (CML) for clients
Baker Ave owns (F) for clients
Baker Ave owns (GT) for clients
Baker Ave owns (LEN) for clients

JOE LAVORGNA
***No Disclosures***

PATRICK MCKEEVER
***No Disclosures***

ANTHONY SCARAMUCCI
Scaramucci and SkyBridge Capital owns (KIRK)

BRIAN STUTLAND
pending...

CNBC.com with wires.

Symbol
Price
 
Change
%Change
KIRK
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