My Picks For VMC PSL 8
Commentary: I tried to stick with a lot of international here, specifically china make up 50% of the portfolio. 2/6 Are Healthcare related (Not including LTUS.OB). Basically the goals here were to pick stocks that are not as effected/badly effected by a downturn in the U.S. Economy. Most of these stocks are relatively cheap with lots of them trading under 10 PE's going forward. Most have strong balance sheet as well. And that is really what I was looking for when I made these picks.
CDS (1 Pick)- I'm the only one that picked CDS. I believe CDS is one of the best china plays out there. Given 2008 Guidance of around $1.10 a share it is trading at less then a 6.5 PE going forward. They are clearly a great growth story here. With all china companies you always have to ask are they real. Well although no one knows this for sure. Lets look at the facts shall we.
They Continue to Meet or exceed expectations on the earnings front.
They Graduated from the OTC.
CDS is not cash poor. In fact they had well over $1.00 in cash on their balance sheet so the balance sheet is solid.
So CDS a good Growth story that has seen it stock price beaten up and now the PE is less then 6.5 time 2008 guidance. I say Undervalued and worth a shot, I also believe CDS is high quality china stock, so I feel it is currently trading at a significant discount to it's grouping.
Disclosure: I Own CDS
CIMT (3 Picks)- Looks like things are only getting better here with this kind of growth, and the sector it is in, it could trade at a 15 PE. Q3 is generally a weaker quarter seasonally, and they still earned .06. Q4 is generally stronger so expecting a better q4. Furthermore the recent acquisition should only help #'s going forward from the sounds of it. Cash is also $1.12 so balance sheet is healthy. Lots to like here.
Disclosure: I Own CIMT
LTUS.OB (8 Picks)-Kind of surprised this one got that much support. What you like here is kind of Obvious the company is growing revs pretty solidly plus a .05-quarter for a stock under a $1.00 is generally a great place to buy. Balance sheet is also solid, with large cash position.
Disclosure: I Own LTUS.OB
RBCL.OB (5 picks)- A growing healthcare companies with solid balance sheets, with backlog near record highs, don't usually trade at PE's of 7, but this one does. Looks like a good opportunity to me.
Disclosure: I Own RBCL.OB
SGTI.OB (2 Picks)- Earned .11 last quarter, so is really cheap based on that alone. Decent balance Sheet. Q2 and beyond this company might easily beat q1 earnings. Stock is trading at a PE 0f 7 and seems undervalued here.
Disclosure: I do not Own SGTI.OB
ZYNX.OB (24 Picks) The top pick in VMC PSL 8. Should have a .03-quarter next quarter based on orders. So a medical related stock Trading at a possible forward PE of less then 11 seems like an attractive opportunity.
Disclosure: I Own ZYNX.OB
All is just my opinion, and I could always be wrong though.
