NSOMNIYAK Challenge
Commentary: I decided to pick stocks that I though were really, really cheap, figuring if they didn't mess up, the cheapness should at least provide a floor if the market falls off a cliff. Each of these have there issues, but I think they are drastically undervalued that is the thing they all have in common.
CPHI.OB- CPHI.OB Earned .09 last quarter, not bad for a $1.55 stock. There are issues here Cash Flow, A/R are the major concerns here. Still believe at the minimum a pop to $2.00+ is likely. The Sector/Industry I also like Pharmceuticals. So CPHI.OB is the Pharmceuticals/Medical play for me.
DFNS.OB (I own it)-Earned .03 fully taxed Eliminating charge. Solid backlog. New orders should keep coming in. Positive outlook. Solid balance sheet. Alot to like here. Problem is the stock never moves up. I'm believing the fundies will make that change eventually. The Sector/Industry is Aerospace/Defense, another solid sector to be in so DFNS.OB is the defense play.
TSSW.OB-Admitting q2 was a little disappointing, but considering a software company, and a possibility once again for a .03-.05 quarter, could shoot up to $2.00 on a .03-.05 quarter. Stock is very attractive at this point. This represents the Software play of my psl 7 picks.
TSTC (I own it)-If they hit 2nd half guidence q3 and q4 are going to be big. I believe that means big things for the stock price. Although even basing it on last quarter .14 is a pretty good quarter, although y/y comp looked rough. Stock is very cheap here. Good Growth. A/R is the concern. TSTC, represent the wireless play of my VMC PSL 7 picks, once again another good sector in my opinion.
USOO.OB- Trucking/Transportation is not really a great sector here admittingly, but this stock is cheap based on the .09 quarter in q2. Keep in mind 2nd half revs are generally stronger then 1rst half. Could conceiveable see a double digit eps quarter in q3, that would help the stock price.
UVE-Growth is phenominal, I'm taking a chance here on no hurricanes hitting, if no hurricanes hit this stock is probably a double. we could even see better then the .43 quarter possibly. Stock is real cheap on good growth. The insurance play of the picks.
Conclusion Basically my strategy, was to pick real cheap stocks, in different sectors to build a bit of diversification in my picks. So in three words the Plan is Cheap and Diversified. Let see if it works out for me.
