"I think there's winds of change, and I think my loss was somewhat of an anomonly driven by the top of the ticket last year," Margo said.
The campaign will be Margo's third try for a seat in the Texas Legislature.
In 2006, Margo lost handily to Democratic state Sen. Eliot Shapleigh. Last year, Margo ran for House District 78 and defeated longtime state Rep. Pat Haggerty in a nasty and pricey GOP primary battle. But Margo lost the general election in November to Moody. The seat was only one on the border occupied by a Republican before Margo's loss.
Margo said he did some polling recently that was "very positive" and indicated he had high name recognition in the area and that he could win the general election in 2010.
The excitement of the 2008 presidential race between Barack Obama and John McCain, he said, drove up the Democratic turnout in 2008. Moody won't have that advantage next year.
But before he gets to the general election, Margo will have to fend off at least two other Republicans in the primary election. L. Rene Diaz, a political novice who is in the finance and sales industries, said he will run for the GOP nomination, and so has business developer Jay Kleberg.
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