Positioned to roar back.

upward trend

Rehashing last week's spot on the Rocket Stocks list, Zales actually stands a shot at delivering beyond the rough earnings investors are expecting on September 9.

While a recession may not be the most common time to buy high-priced jewelery, increased consumer spending and Zales's prices should help get share prices moving this week.

AT ITS LOW WILL MOVE UP

Investor and former Securities and Exchange Commission Chairman Richard C. Breeden raised his stake to 9,070,839 shares (28.5%), after buying 1,000,000 on Nov. 26 at $6.29 each. In January, Zale appointed to its board Breeden and James Cotter, a founding partner of Breeden Capital and senior managing director of Richard C. Breeden & Co.

P/E of 48.5.

From a recent Mad Money show:

"My take is I don't want to own Zales."

Specialty retailer Zale Corp. said recently that its board approved increasing its share buyback plan by $50 million to a total authorization of $350 million for fiscal 2008.

During the fiscal year to date, Zale has repurchased 13.8 million shares at an average price of $18.06 per share. The company said this amount represents a 28 percent reduction of its outstanding shares during the fiscal year.

Zale said that with the plan increase it now has a total remaining authorization of $100 million.

The stock trades for 8x cash flow.

Gold Prices Killing Jewelers
Kitco gold analyst Jon Nadler says the cost of bullion is now so high it's sending jewelers bankrupt. Even Zales is at risk, he says.

Click here to watch the video.

It gave me lot of pain.