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Cooking at Warp Speed by Jay Palmer
Highlighted companies: TurboChef Technologies (OVEN), Starbucks (SBUX), Middleby (MIDD), General Electric (GE), Walt Disney Co. (DIS)
Summary: TurboChef's super-fast ovens are garnering rave reviews for the high-quality cooking and enhanced taste they produce in a fraction of the time conventional ovens take. That's perfect for its growing client roster including Subway, Disney theme park restaurants and Starbucks -- currently installing ovens at a rate of 1,000 per quarter in their branches. However, despite increasing revenues almost 18-fold from 2001-2005 the stock continues to be the fodder of short 
sellers: TurboChef 's only annual profit in 15 years was in 2004, and it's expected to lose up to 80 cents a share this year; better than last year's $1/share loss. Profit should come in 2007, at 1-5 cents a share. Yet short sellers overlook TurboChef's potential: (1) Its small market cap cap ($418 million) is just half that of profitable rival Middleby's. (2) Despite an 85% run-up since the summer, the stock still has upside potential of 40% as more commercial food retailers like Dunkin (Donut) Brands buy more of what they really need -- speed. (3) A pricey residential model coming out in March could potentially contribute 10% of all sales, which bulls project could reach $100 million in '07 and $145 million in '08. (4) Assuming all goes well, TurboChef could be a tasty dish for big companies like GE or Miele to gobble up. Bottom Line: Even with their recent sharp rise, shares could climb another 40% this year.
Related: TurboChef Technologies- What's Cooking? (OVEN)
OVEN
TurboChef Technologies Inc.
