Xinyuan Real Estate (XIN) is hugely undervalued and got the big push. This is what a speculator waits for -- a stock with huge growth potential, valued at pennies on the dollar. I'm not one of those guys. I focus mostly on the company's longer-term aspects. But I double up my holdings on companies that I expect to bust loose in the short term, too.
Xinyuan is trading at $6, and I see no reason why it isn't worth at least double that. It's investing in China's booming tier-two communities and avoiding the already hyped tier ones. Not to mention that the truly amazing Chinese Olympic coverage is the frothy water on the top of this tsunami.
Sigma Designs' (SIGM) stock took the dive recently, but now it's bubbling back. It's all good now -- concrete fundamentals and low debt. I can't resist buying more of this company. Sigma has good management and is always up for leveraging when it has the opportunity to have an outstanding quarter.
Wall Street overreacted to its lower earnings a few quarters ago. That's been good news for me. I pretty much bought it for nothing. Sigma had announced ahead of time that its earnings would blip lower. So why did the price go down? Wall Street acted like it was blind-sided and went into a selling frenzy. The selling's over. Buy.
VSE (VSEC) is growing at a brisk pace but took a dive earlier this year because of free-cash-flow issues. This is a mostly government funded company. The U.S. government makes good on what it owes, so the free-cash-flow issues aren't a big deal.
