The nsomniyak challenge! - entries for nsomniyak
Once again, let's see just a little bit about each of your picks, a couple sentences is fine. Why do like each stock and why do you think it will do well over the next 3 months in PSL8?
Here are my picks. I am kind of laughing at myself, as, after a lot of thought, I ended up with much the same slate as I ended up with at the end of PSL7! I also suspect that my picks will end up more Sheepish than I would prefer, largely du to my potential lone-wolf stocks all missing the .25 price limit or the volume criterion.
DPDW.OB - Deep Down is one I plan on holding a couple years. They seem well on track towards making themselves a one-stop-shopping play in deep water exploration and production services. Recent PRs are clear indications of the technology leadership they offer and the top-tier partners they are involving. That should keep gross margins very hgih. They have closed the Mako acquisition (giving them a powerful leasing arm imho). During PSL8 I expect to see a PR for an LOI for their next acquisition, and maybe the first steps in uplisting off the otcbb (doubt they could complete an uplist process during PSL8, but think it will start--DPDW clearly does not belong on the otcbb). DPDW has consolidated sharply the last several months and this is a very good entry point.
EGMI.OB - Electronic Game Card seems to be making good on the growth they have talked about. During PSL8 I think we'll see full-year earnings for 2007 come in around the .05 (for a trailing PE of 13) they have guided towards, and this will give further credibility to the .09 they have guided for 2008 preliminarily, allow some PE expansion as investors gain confidence in those projections and EGMI can go to 2.50 this year. Today's .60 to .64 is a nice entry, the .56 or so last week would have been even better. I liked it better last contest as it was less sheepy then.
FRPT - Force Protection has been hammered down to just over $4, resulting in the resignation of the CEO and others. I think this increases the likelihood of the buyout I have long felt was FRPT's end game. I think they will gain some piece of the as-yet-unnounced MRAP order pie, and, once it is known which comanies got how many orders, FRPT gets bought out. Whether that happens in PSL8 is unknown, but possible.
NRDS.PK - Nord Resources - Kind of an emergency pick for me here, as another stock did not qualify, and something of a finagle as the reported profit was due to a one-time settlement, but one I like and own. I will defer to the metal-heads on the jr. miners board, but I like NRDS because it is among the favorites on that board that also has specific, identifiable near-term catalysts that suggest a move up in price. They have started their mine oieprations (catalyst 1) and have begun the process for gaining a listing on the Toronto exchange (now is pink-catalyst 2). Has made an initial move from .90 just before year end to 1.20-ish due to the announcement of starting the uplist proces, which should be done by April, so there is a good chance we see another bump during PSL8.
VBDG.OB - Vertical Branding - basically just playing a VMC board favorite that saw some tax-elated selling at year-end and still offers a good entry point. Another that might be more sheepish than I would prefer, but a close on the bid of a good size spread helps.
MRDAF.OB (wild card) - Meridian Medical is, once again, my favorite stock for the year. It got me a top 10 finish in last year's DD contest, and it is my top pick in Hank's contest this year. My DD post on the VMC DD board circa Jan07 still holds. I believe MRDAF is going to come in with several million in profit for 2007, but have not seen anything official so have it as a wild card. That would be a PE of about 10. Revenue and net income could increase by a factor of 10 in 2008. Still waiting on FDA approval for the Lipo-Laser. For about the 15th week in a row, it is expected next week :) Certainly I expect it in Q1/PSL8. While that is frustrating, I look back at the 2007 performance and am pretty happy to have this as one of my largest positions. This could be a real rocket. Last week MRDAF dipped from 1.20 to under $1 (very briefly intraday--unfortunately I did not have funds to buy), then rebounded from about .95 to about 1.25 on only 70K shares in about 3 hours. A million share day after FDA could be explosive.
