LeapFrog (LF)

[rayank]

"LeapFrog (NYSE: LF) (crazy cheap) hasn't got any of love from investors this year. It's trending scary close to 52-week lows after management lowered guidance for the holidays, noting the "tough retail climate." As usual though, Wall-Street's short-termism is our opportunity.
This company has constantly sandbagged earnings, beating the consensus for the last 11 quarters. Also, weak holiday guidance isn't exactly new news at this point. With some pointing to the weakest holiday season since 2009, many investors would think to steer clear, but that pessimism is already baked in and frankly misapplied here. LeapFrog is crazy cheap. The company trades at less than six times earnings with zero debt and about 30% of its market cap in cash. Its passionate CEO is just the cherry on top.
More importantly, though, retail is weak, tablets are still red hot. IDC believes this Christmas will mark a paradigm shift with worldwide tablet sales expected to outstrip PC sales for the first time. That's great news for the LeapPad Ultra, which can't stop winning educational awards and has landed a spot on Toys R Us' fabulous 15 list -- the de facto grouping for blockbuster toys each holiday season. While LeapFrog may seem like a lump of coal for investors, I expect Santa's sleigh to come stocked with Ultras this year and investors should prepare for a shiny gift-wrapped diamond instead."

http://www.fool.com/investing/general/2013/11/07/roundtable-1-stock-to-buy-in-november.aspx