My Picks
BSPM.OB- Earned .16 last quarter, and with new products coming earnings numbers should only get better from here.
So we have a stock selling at a little over 3 times earnings based on last quarter with improving earnings going foward. I think there is a good chance we see a .17-.20 in q3, in my opinion, which the last time it seen, a .16 it pushed it to $4. Well a Push to $4 is a double from here, so seems like a nice risk/reward play. My only concern and it is a major one is it is a china play. But I like BSPM.OB Enough to own it personally and as a PSL 13 Pick. Time will tell if it works out.
DGSE- Earned .07 last quarter and .13 for 6 months ended. Stock is significantly undervalued. Even at a PE of 10 stock trades back to about $3, plus seasonally strong q4 is still to come. My Opinion why DGSE isn't trading over $2 already is the whole quoting confusion of DGC/DGSE. Now when that is worked out, who knows, hopefully the sooner the better. I think DGSE is very undervalued here, and the risk/reward is highly in your favor.
MSN- Earned .04 last quarter in seasonally weak q1. This seems to be a decent turnaround play. Would be cheap on the .04 alone, but we have the two big quarter coming up, and this could send the stock to about $2.50-3.00 if they deliver the .06-.08 like I think they can in q2. My guess is it sends the stock significantly higher. The Kicker here is it is very cheap if you factor in the balance sheet. Trades waaaaaaaaaay below book value, and features almost $1 in cash on the balance sheet.
PRGX- PRGX is yet another turnaround story. PRGX in my opinion is a bargain even here, I would of preferred to have it under $5 for contest purposes, but as my number 1 position in my portfolio I feel it is very undervalued. My reasons why I like it is first they had a very bullish outlook in the past earnings report. They earned .21 last quarter, but they really earned .24 if you eliminate the one time charge. In My Opinion they will report .25-.30 in q3, which may send the stocks to double digits, in fact it was a $12 stock a year ago, it may be able to go back there if they keep executing. Of course you never know with earnings reports, but seems like it offers a good risk/reward ratio at this point.
ROIAK- ROIAK is my only pick that I do not own. This pick would have been NIDB.OB my favorite small bank if it met the minimum volume requirements, but NIDB.OB doesn’t. So I went looking for a stock and ROIAK seemed like the best fit at these prices. Earned .12 last quarter, so very cheap based on earnings. I believe it can come close to repeating next quarter on the earnings front. They also have a big share buyback, which should give the stock good support. The Things I don’t like in this pick is it’s balance Sheet and I wasn’t crazy about the delay of the 2009 annual meeting either. But I believe that ROIAK offers good risk/reward at these levels.
UPG-Earned .12 last quarter fully taxed, and it doesn’t seem to be all that appreciated at $2.31. This stock seems significantly undervalued at these levels. I feel a PE of 10 is warranted for this company, and in my opinion that could send it to the $4.50-5.00 range. UPG also has a solid balance sheet where it trade below book. In My opinion UPG is another good risk/reward candidate at these levels. Just my opinion.
Conclusion: I do like my picks a lot for this contest and I own all of them except ROIAK personally. Hopefully they do very well, but as always time will tell of course. Just my opinion.
