January 11, 2006

SpeculatingStocks.com Stock Pick: Movie Gallery, Inc. (MOVI)

Stock Price: $5.58 (long-term strong buy)

Movie Gallery, Inc. is a home video specialty retailer primarily focused on rural and secondary markets. The Company owns and operates approximately 2,500 retail stores, located throughout North America, which rent and sell digital video discs (DVDs), videocassettes and video games.

MOVI is off a poor 2005, dropping from its high of $34.13 to as low as $4.51. MOVI is now at a market cap of only $177.92 million. Last quarter, the company reported revenue of $572.4 million and a net loss of $12.47 million. Investors should no longer have to fear bankruptcy as once speculated.

MOVI has an extreme short position with 66.52% of the float 25.9 million being shorted right now. We believe these shorts are becoming greedy and will be forced to cover in the future creating a major short squeeze.

SpeculatingStocks.com Target Price: We expect MOVI to reach $15.00 within the next 6-12 months.