H.H. Gregg (HGG), a regional retailer of consumer electronics and appliances, is a turnaround candidate that seems to have attractive risk/reward potential at current levels. The company has been struggling of late. Call it the Best Buy (BBY) syndrome. They are suffering from the same problems as the nation's largest consumer electronic retailer. People come in, test the product then go home and buy it online for a cheaper price.

The Best Buy syndrome is not an easy problem to fix, but H.H. Gregg seems to be on the right path. We feel this way because they are taking the same steps as another regional retailer with the same problem: Conn's Inc. (CONN). If you look at CONN's chart, it has gone from $12 to $27 over the past year. We know the CONN story well because we have published several reports on the company. HGG is essentially taking the same steps to right the ship although they are at a much earlier stage in their turnaround.