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Sunday, 03/09/2008 11:39:49 AM

Sunday, March 09, 2008 11:39:49 AM

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7 Highly Rated Stocks on Sale
By Matt Koppenheffer February 27, 2008
7
Recommendations

I am always looking for a good deal. I buy extra boxes of Cocoa Puffs when they're on sale, and I pounce on undervalued stocks.

The idea that anybody would sell a stock for less than its worth might seem silly, but legendary value investor Ben Graham tells us, by way of allegory, how we can find these situations.

In The Intelligent Investor, Graham introduces readers to a wacky guy named Mr. Market. Mr. Market's game is to pay you house calls every day, and he offers to sell you interests in businesses he owns or to buy from you interests in businesses you own. Sometimes Mr. Market shows up at your door very excited, and offers you premium prices for your holdings. Other times he is inconsolably depressed about the future and will offer to sell you what he has for as low as pennies on the dollar.

So to find some of those stocks that make Mr. Market weepy, I turn once again to The Motley Fool's CAPS investor community. Each of the companies below had been given a five-star rating (the highest) by our community of investors just 30 days ago:

Stock
30-day Return
One-year Return
Current CAPS Rating

Sigma Designs (Nasdaq: SIGM)
(34.0%)
13.1%
****

Ceradyne (Nasdaq: CRDN)
(19.5%)
(30.7%)
*****

Hardinge (Nasdaq: HDNG)
(18.6%)
(43.1%)
*****

Actuate (Nasdaq: ACTU)
(18.6%)
(2.7%)

****

Gen-Probe (Nasdaq: GPRO)
(10.6%)
8.7%
****

China Security & Surveillance Technology (NYSE: CSR)
(9.2%)
0.0%
*****

ASML Holding (Nasdaq: ASML)
(8.7%)
(0.5%)
*****

Data from Motley Fool CAPS as of Feb. 26.
As the table shows, these stocks are all still highly regarded by the CAPS community despite their underperformance over the past month. These are not formal recommendations, but they could be a great place to kick off further research.

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