NSOM Challenge -
SUTR (4.72) - Chinese steel company has traded down sharply in recent weeks and looks oversold. I would have preferred it at yesterday's intraday low of $3.73, but it's still cheap enough at $4.72 for me to pick it ..... June Q4 earnings are due out within a few weeks and should exceed the single analyst estimate of $0.21. This stock looks like a much better value than competitors GSI and CPSL, however a potential concern is a recent downtrend in asian steel prices.
CNEH (2.43) - Chinese oil company stock is very depressed being caught in the crosshairs of 3 very weak market segments .... China, Energy and OTCBB. EPS of $0.19 in Q2 which the company calls "seasonally weak". Obviously lower oil prices will impact future earnings, but that will be partially offset by impressive production increases. Stock looks oversold especially if they can upgrade to the AMEX within a few months as planned.
SOL (13.90) - Solar chip manufacturer is growing very rapidly and reported EPS of $0.38 in Q2 .... sector is fairly depressed due partly to falling energy prices which diminishes demand for solar energy, however chip demand should continue to exceed supply for several more quarters .... the stocks in this sector are very volatile and I expect a further rebound from recent lows ahead of a strong Q3 earnings report ....
CSIQ (24.95) - Solar chip manufacturer with a similar story as SOL .... EPS of $0.71 in Q2 excluding special items. Stock should rebound further at some point ahead of another strong earnings report due out in November .... though I would have preferred it at the intraday low of $20.10 just two days ago !
MALL (8.32) - Sells PC's, related equipment and services through catalogs and the internet .... stock is down from the 52wk high of $20.50 despite solid earnings even in this weak economy. EPS of $0.25 in Q2, excluding a charge of $0.03. Stock should rebound in anticipation of seasonally strong results in Q4.
SIF (8.80) - Manufacturer of parts for the aviation industry .... stock is way down from the 52wk high of $23.25 despite solid earnings. EPS of $0.38 in June Q3 .... backlog strong albeit down a bit on a sequential basis. Lower energy prices have already lifted the airline and related stocks significantly yet surprisingly SIF is still near 52wk lows. The stock should eventually get noticed and rally ....
