TheStreet.com's Jim Cramer says it'll be a huge, bizarre investment that sticks -- not a bid for Wachovia.

Why is there so much chatter about Wachovia (NYSE: WB) (Cramer's Take) getting a bid? Why do people think that its deposit base is worth the heartache of dealing with its mortgage portfolio?

We have all heard the chatter about a potential bid for Wachovia, and it sure would be sweet, because the stock has been one of the worst of the group. It doesn't have a CEO, so that fits the scenario of a company that could be for sale. The franchise was always a solid one until now. And I will admit that the secret to the bulls' case for a better second half is a bid for Wachovia, a premium bid that takes everyone's breath away and causes a short panic.

My problem is that if you wanted to buy Wachovia, why not wait? What's the hurry? Is it that you might miss a chance at a bottom? Is there someone else out there who might want it? Do you perceive a bidding war, for instance, between JPMorgan (NYSE: JPM) (Cramer's Take) and Wells Fargo (NYSE: WFC) (Cramer's Take) for WB? How about USB (NYSE: USB) (Cramer's Take)?

Chico's FAS (NYSE: CHS), the once high flying retailer, hit a serious bump in the road in early 2006. The outstanding same store sales growth that drove the stock to record heights rolled over and so did the stock. After peaking in early 2006 at $49, the stock is now down to $20, a 60% drop.

Last night, Chico's reported results and it appears the worst in same store sales (SSS) could be coming to an end. The much watched industry metric could turn positive by the Spring.

SSS for the Chico's stores came in flat, which is a big improvement from 2006 figures. However, management said February SSS were down 3%. Therefore, Chico's is still going through a bumpy period.

With the stock down 60% from its high, it is time to start getting into this stock. Chico's is debt fee, is a cash flow machine and could be a private equity candidate if SSS improves in the Spring and the investment community doesn't drive the stock higher.

Retailer with a loyal clientele come back in droves when the company gets the product mix right.

When stocks rise on seemingly bad news, it is a "pretty good indication" that the stock has bottomed, observes Chuck Carlson, editor of The DRIP Investor.

In this case, the stock that may have bottomed is Home Depot (NYSE: HD), which has held up well despite poor earnings, poor guidance, and generally poor prospects for the housing sector.

The company recently reported a 5% drop in same store sales, notes Carlson, and the "pain" is expected to continue into 2007. For the fiscal fourth quarter, the company has forecast a 12% to 16% drop in earnings per share and a gross margin decline.

Says Carlson: "Despite the tough earnings report and weak near-term outlook, these shares held tough and even bounced a bit on the news."

Meanwhile, the advisor sees "ample value" in the shares and expects the stock to perform much better in the year ahead. He also notes that the firm "sweetened the dividend pot" for its shareholders by recently announcing a 50% increase in the dividend. Indeed, he points out, this was the second time in 2006 that the company boosted its dividend 50%.

Incidentally, in Carlson's newsletter, DRIP refers to dividend reinvestment plans; his service focuses exclusively on quality stocks that offer these programs. DRIPs provide a low-cost way for individuals to acquire shares. For example, at Home Depot, the company's direct-purchase plan has a minimum initial investment of $500, with subsequent investments that can be as little at $50.

Steven Halpern is the editor of TheStockAdvisors, a free daily overview of the latest investment ideas from the financial newsletter community.

It will come as no surprise to chart watchers, and general followers of the stock, when I say that shares of Dell Inc. (NASDAQ:DELL) Inc have struggled over the past couple of years. The stock is, of course, well off its early-2000 highs and has been trending lower since December 2004. The driving forces for the downtrend range from lackluster earnings reports to battery recalls and this has left many investors skeptical of the stock's prospects. However, Dell has shown some signs of life recently as it has bounced from the lows hit in July after the company issued downside guidance.


The recent bounce has drawn attention to the stock and an article [subscription required] in today's edition of The Wall Street Journal delves into Dell, saying the company has lost its status as the top world-wide personal-computer maker but then offers an upbeat perspective. The company is putting less focus on market share and giving more attention to buoying profits. The article notes that some analysts are positive on the stock but aren't anticipating the stock will surge higher. What really caught my eye though was the end, where it points out that some analysts remain skeptical.

The subdued expectations from the bulls and the outright skepticism from some bears fits with a theme I have been watching develop over the last few months. The shares gapped to a new annual low on the July earnings warning but the stock failed to see follow-though on the gap and quickly bounced back. Could that have been the beginning of a bottoming process for the stock?