In the past two days, I've bought back into HOTT. FWIW, I began buying HOTT in 2008 while it was in the $4 area. Sold over $10 earlier this year. Bought some call options a few times it had a hard daily or two-day drop in that span as well. HOTT was kind then. I also flirted with HOTT earlier this year on its quick drop, but got stopped out.

Now, I'm back in because of a couple reasons and valuation is one. Yes, it's a profitable company with no debt and relatively low valuations. However, they also stopped growth before many did (smart move) and focused on their existing stores. Now, I could see a smart move by HOTT being expansion in key areas. CRE is so depressed I'd imagine they could get some good leases and be set for the return of the consumer. Just my 2 cents.

I think HOTT on its own could easily go back near/over $10 in the next two months by itself. A somewhat "fair" valuation for M&A would be closer to $12-$13 right now, my opinion.