Circuit City Stores (NYSE: CC) shares dropped sharply after it reported disappointing earnings, but there is at least one remaining hope for shareholders. The electronics retailer said it would undergo an extensive review of its strategic options. Unfortunately, investors looking for a sale transaction may be waiting awhile- the company noted that it was initially focused on internal improvements to operate as a standalone business. Regardless, a successful turnaround is definitely a prospect worth watching!

Circuit City shares have been in a free fall ever since 2007 when the company first started experiencing a slowdown in sales. This latest quarter has been a nail in the coffin as it posted wider losses and withdrew its financial outlook as it reviews its business ahead of the holiday season. This follows the departure of its Chairman and CEO just last week. Meanwhile, experts are predicting an extremely bleak holiday season this year.

So, where's the opportunity here? Well, Circuit City still owns a substantial number of retail stores and any new blood in management could help a turnaround. Circuit City may have posted losses for five of the six quarters, but any successful execution this holiday season versus competitor Best Buy could help position it for the future. The company plans to launch a new marketing campaign, upgrade its store signage, and boost its in-stock position on key categories.

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The carbon market represents an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Countries bound by the Kyoto Protocol can use carbon trading as a way to meet their obligations to reduce carbon trading and therefore mitigate global warming. To date, carbon trading is seen as one of the most viable approaches to control global warming through economics.

Under the supervision of the United Nations, industrialized member nations are bound to reduce their emission of CO2 and other harmful gases by 5.2%. Companies or other groups that do not meet their reduction quotas can buy "carbon credits" from those who have exceeded their reduction targets.

As an alternative however, carbon credits can be created in developing countries can also generate credits (known as Certified Emissions Reductions or CERs) at a lower cost, and under the UN sponsored exchange mechanism, can be sold to developed countries at the prevailing prices as set on the world market. Hence the business opportunity.

In effect, this forces polluters to pay a charge while sellers are rewarded for having reduced emissions more than needed. The theory is that those that can easily reduce emissions at a reasonable cost can do so, achieving pollution reduction at the lowest possible cost to society.

Market prices for these carbon credits are also on the rise as oil prices continue to rise.  The price of carbon credits is linked to the price of oil in that lower oil results in lower gas, which encourages energy producers to burn gas instead of coal.  Since gas is less carbon intensive than coal, demand for carbon credits falls as energy providers have to buy fewer credits.

Carbon credits are also seen as a safe-haven for traders looking to get into more secure investments, according to analyst firm Point Carbon.  The firm argues that a fell in the projected supply of carbon credits would exceed any drop off in demand, which should in turn lead to higher carbon credit prices by supply and demand economics.

Carbon credits are also gaining popularity among the larger public.  Trading on the European Climate Exchange market along has more than doubled during the first half of the year compared to the same period in 2007.  Chief executive Neil Eckert told BusinessGreen.com that "the growth is not in a straight line and there are ups and downs, but overall there is a really healthy growth pattern."

EcoloCap Solutions (OTC-BB: ECOS) is well-positioned to profit from the bullish carbon credit market as the are a leading producer of Certified Emissions Reductions (or CERs).  EcoloCap Solutions offers innovative and integrated business solutions to help combat global climate change. Specifically, the company helps create environmentally-friendly projects in developing countries in exchange for carbon credits that it can sell on the open market. Investors interested in learning more can view a research report by clicking here.

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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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