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It's earnings season again, and in the past few days a few companies have reported "not terrible" earnings, only to find their respective stocks blitzkreiged for a lack of a better word. For the short term trader this is a nice opportunity for a 2 or 3 point sympathy move upward. As for the value investor with a longer term horizon, this presents a nice entry point for position building. So here are a couple that have hit my radar, I may be adding more companies as I see fit, but let us start here. Good Luck!

World Fuel Services (NYSE:INT): a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services, today reported second quarter net income of $48.6 million or $0.68 diluted earnings per share compared to $50.2 million or $0.70 diluted earnings per share in the second quarter of 2011. Non-GAAP net income and diluted earnings per share for the second quarter, which exclude share-based compensation and amortization of acquired intangible assets, were $52.8 million and $0.74, respectively, compared to $57.7 million or $0.81 in 2011.

Let's analyze this. The price of fuel is going up, again, and they are one of the industry leaders in the logistics part of this business. INT does over $37B in revenue annually, and have the same amount in cash as debt, which is a great balance sheet booster. The stock back in May was $44 a share, so there is a significant buying opportunity here. Their quarterly revenue growth has been 34% and return on equity is 16%.

Their 3 segments, Aviation, Land and Marine all reported increases in revenue. All but Aviation turned a profit for the quarter. More often than not the street over reacts to these reports, and there is no doubt you will see INT back over $40 shortly. Unfortunately there are no options to trade on this to increase exposure if that is preferred so you would have to buy the stock.

Sturm Ruger (NYSE:RGR): I have been pounding the table about this stock for about a year an have made amazing returns thus far. Last month when the stock sold off to $38 or so, I recommended it. It traded back to over $50. Here again is the opportunity to get back in this powerhouse as it will most certainly trade back to $50 again. I am reading through the earnings and scratching my head wondering why it isn't trading at $60 compared to $43. They beat the street handily on earnings per share and revenues for the current quarter with a 50% increase in sales.

Compared to the prior year quarter, their GAAP earnings per share increased 63% and revenues blew away previous estimates. Listen to this: Gross profit increased 37%, 190 basis points better than last year. Operating margins increased 24%, 230 basis points better than last year, and net margins increased 15%, 150 basis points above last years. The stock is trading down 12% today alone on these numbers. If we look at their key stats, let's not forget they have ZERO debt and $98mm in cash.

As of July 13 2012, 33% of the float was short the position. I would have to assume they will be covering the position on a great trade, what better time to get in than now? If you are a little nervous than pick up the stock here at $43 and write the August 45's for $1 (2.4%). If you lose the stock at $45 on the 2 week bounce you make over 7% for the 2 weeks. I like it.

Source: Oversold On Earnings: Some Dead-Cat Bounces For A Nice August