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Unlike what the so called experts are saying, I am still trying to find long term investments since I do not have the time to day trade, or follow rumors and fraudulent advice. The financial media believes the recession is over. They seem to forget that unemployment is approaching 10 percent and retail sales are still flat. The big names that have beaten lowered expectations are a bit overbought at this point so it’s time to look for smaller unknown companies that are slowly making a comeback; and the analysts are not following.

I will provide you with two stocks that have made missteps but have made marked improvement.

Both of these companies have a few product lines to help get you and them through the recession.

CalAmp (NASDAQ:CAMP) is in the wireless market and manufactures direct broadcast satellite (DBS) hardware for EchoStar (NASDAQ:SATS) and DirecTV (NASDAQ:DTV). It has also broadened its wireless services division to include fleet monitoring, public safety and other mission critical systems over the past few years. Revenue bottomed out earlier this year and is expected to increase in coming quarters. The one misstep was a manufacturing flaw in hardware being developed for EchoStar’s DISH network which halved its revenue. It has since settled with EchoStar and the supplier that allegedly created the problem and expanded its wireless offerings, and the future looks bright. CAMP had just over a 2 dollar high and just under 40 cent low in the past 52 weeks.

In the first quarter 2010, the company reported revenue of 23 million dollars with a net loss of 4 million dollars or 16 cents a share. CAMP is expecting revenue in the range of 23 to 25 million dollars next quarter and a range of 26 to 32 million dollars for the 2nd half of 2010. The company may even return to profitability the 2nd half of 2010. There is still risk with this company and they have paid down debt however it is an ongoing concern.

Cryolife (NYSE:CRY) is a biomedical services company in the tissue preservation and surgical adhesive markets. Its BioGlue product continues to increase revenues for the company and the FDA has given the go-ahead to process human heart valves. The one misstep was providing infected tissue for a knee surgery which ended up killing the patient. This resulted in numerous lawsuits, and an FDA ban on tissue processing that was lifted in 2003. Shares traded as low as 2 dollars in 2002. It has since peaked over 15 dollars late in 08 and has been between 5 and 6 dollars for the past 5 months.

The company has over 18 million in cash and negligible debt. 2nd Quarter 2009 results will be released on July 30th however the company has been profitable since 2007. 2009 full year revenue is expected to be in the range of 113 and 119 million dollars. Revenue has increased at least 10 percent year over year since 2006. With modest revenue increases over the past few quarters, given the recession, the company continues to innovate its tissue processing, and adhesive products.

Both of these companies should survive the recession; they have moderate risk because of their past histories. Considering these stocks are both in the single digits it may be worth the risk if you are like me and tired of losing money on blue chip companies and banks.

I am have owned both of these gems for over 5 years now as I still believe in the long term success of companies that are able to make a comeback, have sustainable product lines and continue to innovate.

Disclosure: Long CRY, Long CAMP

Source: Two Hidden Gems for a Recession