Finding a Bargain in Sharper Image

Editor's note: This Stocks Under $10 alert was originally sent to subscribers Nov. 15 at 2:59 p.m. EST. It's being republished as a bonus for TheStreet.com and RealMoney.com readers.

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The holiday shopping season officially begins Nov. 24, the day after Thanksgiving, otherwise known as Black Friday. But the fireworks have already begun in the under-$10 niche of the retail sector, as Reuters reported Tuesday that Danish investor Jakup Jacobsen is preparing a bid to purchase Pier 1 Imports(PIR Quote).

The home-furnishings retailer gained slightly more than 20% on the session Tuesday, closing at $7.62. However, the stock, which was recently trading at $7.44, remains about 20% below its June highs, as the company is on track to lose $1 a share in fiscal 2007 (ending February). Even so, Jacobsen, who bought Pier 1's British and Irish stores in March, found value in the retailer's stock at these depressed levels. ...