This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

February 5, 2009 - Susser Holdings Corp. (SUSS-NASDAQ) together with its subsidiaries, operates convenience stores, and distributes motor fuels in Texas, New Mexico, and Oklahoma. It operates in two segments, Retail and Wholesale. The Retail segment operates stores that offer food, beverages, snacks, grocery, and motor fuel, as well as candies, packaged foods, magazines and newspapers, health and beauty aids, and various non-food items. This segment also owns and operates ATMs, pay telephones, and proprietary money order systems in its stores, as well as provides other services, such as lottery, prepaid telephone cards, wireless services, and car washes.

The Wholesale segment purchases and distributes branded and unbranded motorfuel to the company-operated retail convenience stores, contracted independent operators of convenience stores, commercial users, unbranded convenience stores, and unattended fueling facilities. In addition, the company sells and installs motor fuel pumps and tanks, as well as provides various environmental consulting services, such as hydrocarbon remediation and Phase I and II site assessments. Susser Holdings is headquartered in Corpus Christi, Texas.

Revenues at SUSS caught my eye. In 2006, they were $2.265 billion. The next year: $2.717 billion. For 2008, analysts think the company hit $4.41 billion. For 2009, they predict $4.15 billion (the economy being what it is). That's fast growth.

Earnings are right behind. In 2006, they were negative 35 cents a share. In 2007, they went positive to 97 cents a share. For all of 2008, analysts predict 80 cents and for 2009, 76 cents. Not exactly a trend that is favorable for investors, but the numbers seem to incorporate a dire economic forecast. Look for the December quarter to be 20 cents compared to 5 cents in the same quarter last year. For the March quarter, analysts see negative 4 cents vs. negative 20 cents in the first quarter of last year. The first quarter is the weakest due to inclement weather and much lower vacation driving.

Another thing that caught my attention: institutions are buying this stock. In the 1st quarter of 2008, 32 institutions bought the stock and 20 sold it. In the 2nd quarter, 34 bought and 23 sold. In the 3rd quarter, 31 bought and 20 sold. Each quarter, they were net buyers. There are only 16.88 million shares outstanding.

While the stock went public in 2006, its price range has been noticeable, going from a high of $28.49 in 2008 (up from a low of $16.90 in 2006) to a low of $7.68 midway through 2008. From there it rallied to the low $20's, then moved down again to hit the $10 mark. Volatility is part of owning this one.

There's a relatively large amount of debt on the books, $425.7 million, making up 68% of capital. Total debt to equity is 2.16. There's $9 million in the bank, and the Current ratio is 1.06. Book Value is $11.66 so at these levels you're buying the stock at close to book value.

More numbers: Price to sales is a meager .05. Operating margin is 1.28% with a Profit margin of .42%. Return on Equity for the last 12 months was 9.6%. There are 17 million shares outstanding but only 10.02 million in the float. Insiders own 55.45% of the stock. There is no dividend.

SUSS has seen ever increasing revenues with a strong possibility that 2009 will put an end to that trend. That's expected in this economy. But obviously what it's selling, people are buying. Now the challenge is for management to turn all those revenues into better profits. If it can manage that, this stock should see earnings' increases more in line with revenue growth. With the market continuing to show weakness, this stock may get below its book value again and make for a better entry point, if investors who've investigated it enough find it worthy.

Company Web site: www.susser.com

- Ted Allrich