Sanchez Energy Corp. (fka SNECQ)

[Timothy Smith]

Four reasons SN is a good growth play at under $18 a share:

The company has approximately $145mm in net cash on the books, which equates to around 25% of its market capitalization at these price levels.

The 11 analysts that cover the stock have a $27 price target on the shares, around 50% above the current stock price.

Revenues are exploding. Sales should increase at better than 200% this fiscal year, and analysts believe a higher than 300% increase is in store for FY2013. Despite this revenue growth, SN is selling for under 12x forward earnings.

The company turned cash flow positive last year, and has produced positive cash flow each of the last four quarters. Based on last quarter's cash flow, the next year should show at least $50mm in operating cash flow.