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It has been a very interesting week for the portfolio thus far, with several very large movers (in both directions). so I thought I would highlight a couple of my thoughts:

Allied Defense Group (ADG): It has been one fantastic week for this stock as it has climbed 33% thus far for the week with the only news being a recommendation by the portfolio manager of the Aegis Value Fund on CNBC. Of course, this was one of the more beaten down stocks over the past few months and so long as the company can turn their record backlog which is multiples of the current market capitalization into real revenue and profits (which we hopefully will see more indications of in the next quarterly report out next week) then the stock is still very inexpensive at current levels in the mid $6 range.

Advocat (AVCA): The stock reported earnings after the close on Wednesday, missing the sole analyst's estimate of revenues and EPS. If one were to back out professional liability they would have surpassed EPS as this was the largest shift in costs for the quarter from a benefit to an expense. That being said, the Medicare reimbursement levels in Texas were a bit soft and I will be looking to hear more color on what is occurring in tomorrow morning's conference call.

Chyron (CGS): Things are hitting on all cylinders for this graphics company. The company reported strong growth in both revenue (+30%) and EPS. The company will benefit later this quarter and the following quarters by their significant agreement with Gannett (NYSE:GCI) (which is likely to expand from television to newspaper next fiscal year). The company will also be behind NBC's graphics at this years Summer Olympic games in Beijing, which start on August 8. This is one of the stocks that is likely to become a larger portion of the portfolio over time.

Lumber Liquidators
(NYSE:LL) reported very strong earnings with record revenues and profitability as they continue to benefit from sales of higher margin flooring and the homeowners propensity to shop around to this low-cost leader.

A couple of ideas I'm exploring for potential inclusion in the portfolio:

Intersections, Inc (NASDAQ:INTX): The company is the leading provider of identity theft solutions and is also expanding in the background screening market. The markets are still highly fragmented but INTX has about a 30% share of the market with an industry-best product. The stock is trading for 15x trailing earnings, at 0.5x sales with healthy operating cash flows.

Medallion Financial (NASDAQ:TAXI): Medallion is a specialty finance company focused on the taxi medallion market. The company has strong cash flows which are distributed back to shareholders in dividends. The company has one of the lowest amounts of chargeoffs of anyone in the specialty finance area and is benefitting from continued increases in medallion prices, especially in Chicago and New York. I am early in my research of this company but it is possible it could enter as a small position in the next couple of months.

Source: Six Stocks with Possibilities