SFP (Salton Inc.) 1st pick

The first stock that I have started to look at is Salton Inc (SFP). SFP is a NYSE traded stock that belongs in the Household-Appliance Industry Group. Lately the household and Appliance group has been steadily improving and growing. This growth can be attributed to the housing boom and the need to eventually furnish these homes with--you guessed it, furniture and appliances! SFP designs, markets and distributes small appliances and electronic products for kitchens and cooking as well as television/video equipment as well as tabletop and lighting products. Yes, that's a lot of stuff that can be used in a home, especially a "newly created and desperately in need of furnishings and appliances- home".

That's ONE of the reasons I like SFP. The other reason I like SFP is the fact that it has been under accumulation by the Contrarian Equity Fund, L.P. To me, mutual fund accumulation is a bullish indicator that shows the stock is attractive to real investors and not just day traders. FINALLY, SFP has a high short interest. That's right, roughly 50 % of the float is short (although it is down 11%). With about 16 days to cover and a 50% short float, I can almost taste a short squeeze. We will see in due time. I wills say this though, those who feel uneasy about the huge short position shouldn't play SFP. This stock is a little risky at this point and I would only recommend it to those who have a little tolerance to volitile stocks.

TIME FRAME: At this point I CANNOT recommend SFP as a long-term investment, so I will recommend it as a short - intermediate term trade. Of course this can always change. If indicators point this out as a longer term trade or investment, I will make the necessary adjustments and post the change in holding time frame