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Wal-Mart Stores (NYSE: WMT) and Target Corporation (NYSE: TGT) have always been at odds with eachother. One popular strategy was to pair trade the two stocks based on the economic environment. Wal-Mart, famous for its low prices, is a popular stock during an economic downturn as people tend to flock to their stores. Conversely, Target tends to attact the middle class far more effectively during an economic boom when they are willing to part with their money more easily.

Many investors using this strategy have been long on Wal-Mart while short on Target during the economic downturn and it has paid off handsomely. Wal-Mart shares have appreciated over 30% in 2008 while Target shares were down over 5% on the year not long ago. However, Target has recently begun to rebound as an end to the economic crisis seems within reach. As a result, investors are now questioning whether or not it is time to switch the play around and look at going long Target while shorting Wal-Mart.

The question now becomes: Is the economic crisis on its way to being solved? Well, the majority of the problems can be traced back to the housing market and many believe that's where a recovery is needed first. Foreclosures not only resulted in a rise in bankruptcies for consumers, but also put pressure on consumer credit. This credit is extremely important to maintaining consumer spending and helping retailers like Wal-Mart. So, is the housing market turning?

Recent Federal bailout packages are expected to give the housing market some breathing room while working to return things to normal. Rising defaults and foreclosures on home loans, spurred by declines in home values, are the cause of the collapse in price and tradeability of the mortgage-backed securities. A $700 billion bailout package put together by the government should help solve those issues by injecting liquidity into this system and encouraging lending once again.

A successful execution of this plan could help the Target/Wal-Mart trade switch, but until then, many investors are likely staying put with their current positions.

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Concord Camera Corporation (NDAQ: LENS) may soon be in trouble after a large shareholder expressed dissatisfaction regarding the company's response to his concerns. Everest Special Situations Funds have been petitioning the company to make key changes for some time now, but their calls have gone unheard. Now, the activist hedge fund is threatening to take its fight public through a proxy contest to replace the board of directors and unlock value itself.

Here's a copy of their September 11th letter to the board:

Dear Mr. Lampert:
 
As you know Everest Special Situations Fund L.P. (“we”) owns approximately 7.29% of the outstanding capital stock of Concord Camera Corp. (“Concord” or the “Company”).  During the past year, through multiple written letters, an in-person meeting and numerous telephone conference calls with management, we have expressed our deep concern over the future of the Company and provided our views on ways to maximize shareholder value.  Unfortunately, despite your assurance that our serious concerns were being promptly addressed in a meaningful way, it appears our concerns and suggestions have fallen on deaf ears.  The Company has not provided us with or implemented any substantive responses regarding the significant concerns we have raised, including:

• the Company’s disastrous operational performance, including 17 consecutive quarters of losses;
• the Chief Executive Officer’s excessive compensation;
• the Company’s significant holdings in illiquid auction rate securities and how it intends to liquidate these positions; and
• the inadequate response of the Special Committee of the Board as to why after 2 years it still has not suggested any strategic alternatives for the Company.
  

As we have repeatedly suggested, in order to maximize shareholder value, the Company should immediately begin a liquidation process and accept our offer to assist in this process.  For all the reasons listed above and in our other public letters, we have lost faith in the ability of the Company’s current Board and management to carry out a liquidation.  If the Company had any intention of liquidating, management should have already communicated with the Company’s clients in order to lead a prompt and orderly process which would maximize collection of the Company’s account receivables and help the Company and its clients plan ahead.  As management has not done so, shareholders can only reasonably draw two conclusions:

• management is looking to entrench itself and not pursue a liquidation; or
• management is not capable in carrying out a liquidation.
  

We demand that the Company immediately modify the Board of Directors composition to add representatives of the Company’s shareholders to assist with and accelerate a liquidation or sale process.
 
If the Company does not promptly meet our reasonable demand, we will not hesitate to enforce our rights as shareholders to seek Board representation or take any other actions which we deem appropriate.  Specifically, we intend to nominate a slate of directors with experience in liquidations and sales processes at the Company’s next annual meeting of shareholders and intend to take all necessary steps to maximize shareholder value immediately following the election of our slate.

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KHD Humboldt Wedag International Limited (NYSE: KHD) may have one of the strangest names on Wall Street, but it also represents one of the best values around. The industrial plant engineering and equipment supply company has been beaten down by the economic slowdown and now trades with a PE-to-Growth ratio of just 0.33. This indicates that KHD is substantially undervalued given its current share price, earnings per share, and earnings growth rates.

Many investors see KHD as an infrastructure play given its strong presence internationally. Over half of the company's $1.3 billion backlog comes from Russia, Eastern Europe, and Asia as their economies continue to grow. The company is also financially sound having reported an 88% increase in year-over-year profits and a doubling of its order intake. Combined, these factors make this company a definite growth play in addition to a value play.

KHD Humboldt Wedag International Ltd. is engaged in industrial plant engineering and equipment supply business and has a royalty interest in the Wabush iron ore mine. The Company's industrial plant engineering and equipment supply business focuses on services for the cement, coal and mineral processing industries. KHD Humboldt Wedag International supplies plant systems, as well as machinery and equipment worldwide for the manufacture of cement and the processing of coal and minerals, whether for new plants, redevelopments of existing plants or capacity increases for existing plants. The Company designs and provides equipment that produce clinker, cement, clean coal, and minerals such as copper and precious metals. The scope of services also includes feasibility studies, raw material testing, financing concepts, erection and commissioning, personnel training, and pre and post sales services.

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