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Filed under: Competitive strategy, Sirius Satellite Radio (SIRI), Stocks to Sell, Recession

In my Top 10 Stocks to Avoid in 2009, I suggested that investors stay away from stocks impacted by a handful of specific themes that will play out during the coming year.

Stocks impacted by higher fuel prices, a stronger U.S. dollar, and high defaults in the credit card space should be investment afterthoughts in 2009.

After listening to Dov Charney's, the charismatic CEO of American Apperal (APP), latest earnings conference call for the 2nd quarter, it got me thinking that this up-and-coming company based out of LA could be something to keep your eyes on. I realize there is no idea so good that it cannot be spoiled by pundits or nay-sayers. However, this next Urban Outfitters (URBN) posted Q2 numbers that would make Richard Simmons quiver.

Good new company with strong fundamentals.  Saw sales increases in April & May despite weakened consumers.  Recently approved stock buyback program should strengthen holdings.  New company with young costumer base & potent advertising campaign, at this depressed price would be a great time to get in.

The fresh inovative designs of the clothing should keep it attractive even in a slow market, international exposure will likely keep this company somewhat insulated from economic pressure at home.