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  • Kratos: At Just $5, This Drone And Defense Stock Is Giving Investors A Half-Off Sale
    Fri, Dec. 19 KTOS 7 Comments

    Summary

    • This little-known drone and defense sector stock is too cheap to ignore after a recent pullback.
    • Barron's and other analysts point out this company could be ripe for a takeover and at a significant premium to the current share price.
    • This company is poised to benefit from increased demand for security, surveillance, and the use of drones, which means the long-term future looks bright.
    • According to multiple analysts, this stock could be worth about twice the current share price.
    • This stock could also be poised for short-term gains as tax loss selling ends and potential short-covering increases in January.
  • January Effect Rally: Why These 'Fallen Angels' Could Outperform In 2015
    Wed, Dec. 17 BAS, KTOS 1 Comment

    Summary

    • Buying beaten down stocks at this time of year can make a lot of strategic sense.
    • Already cheap stocks have been getting hit with a temporary round of excess selling pressure for tax reasons.
    • These types of stocks often experience strong rebounds in a "Santa Claus" rally that could start on December 19th.
    • Shorts that have big gains in battered stocks often cover in January (also for tax reasons), which can fuel additional gains in a "January Effect" rally.
  • Oil Doomsayers Were Wrong In 2009: 4 Reasons Why They Are Wrong Now
    Wed, Dec. 17 CHK, USO, OIL 94 Comments

    Summary

    • Oil is extremely oversold and due for a rebound.
    • Oil consumption remains strong and is likely to increase thanks to cheaper prices.
    • Historically oil rebounds quite quickly, especially when the U.S. and global economy are growing.
    • Investors are overly negative on oil ever since the OPEC meeting, but production cuts could still be on the way.
  • Key Energy At $1: Priced Like An Option With Upside Potential To Match
    Tue, Dec. 16 KEG 9 Comments

    Summary

    • A massive rout in oil stocks has been caused by declining oil, extremely negative sentiment, margin call selling and tax-loss selling.
    • Key Energy shares were trading for more than $10 earlier this year and now are too cheap to ignore at just over $1.
    • This company has a significant amount of liquidity and a history of big comebacks.
    • Key Energy shares are priced like an option and could deliver major long term upside.
    • This stock is also deeply oversold and it is likely to rebound in the short term as tax loss selling fades.
  • Angie's List At $5: Poised For A Buyout, A Short-Squeeze And A January Effect Rally
    Mon, Dec. 15 ANGI 15 Comments

    Summary

    • Angie's List shares are a compelling value and have multiple upside catalysts.
    • This stock is undervalued based on rival valuations, revenue growth, and takeover potential.
    • Angie's List shares have long-term potential as well as short-term potential as the end of tax loss selling and short-covering could create a "January Effect Rally".
  • Update: Ceragon Chairman Buys Over 1.22 Million Shares For Just Over $1
    Sun, Dec. 14 CRNT 3 Comments

    Summary

    • A December 10th filing with the SEC shows that the chairman purchased over 1.2 million shares at $1.05.
    • Trading for a mere fraction of a $4 analyst price target and with a market cap equivalent to less than a single quarter of revenues, upside looms.
    • This stock has been forming a solid base for the past few weeks, and it could be poised to trend higher as tax-loss selling pressure fades soon.
    • Ceragon Networks might have heightened takeover potential due to its low valuation.
  • The 'Immense Opportunity' Is Not In Exxon, It's In Small-Cap Oil Stocks
    Fri, Dec. 12 XOM 51 Comments

    Summary

    • Oil prices may not go as low as some expect and, even if they do, they probably will quickly rebound.
    • The global economy appears poised for long-term growth, and the recent drop in oil prices is only likely to increase oil consumption and economic activity.
    • Many investors are buying Exxon shares due to a slight pullback in that stock, but the really immense opportunity appears to be in small-cap oil stocks.
    • The relative strength in Exxon could be a sign that oil is not going to see a significant additional decline.
    • Small-cap stocks that have strong balance sheets, significant hedges, and even multi-year contract backlogs are worth buying now.
  • The Odds Of An Emergency OPEC Meeting Are Going Up
    Fri, Dec. 12 CVX, USO, OIL 23 Comments

    Summary

    • Many investors seem convinced that Saudi Arabia is interested in a never-ending price war, but this makes zero business sense.
    • Oil is a valuable resource that is not going to be pumped out at low prices forever.
    • The global economy is much stronger than it was in 2009, so a return to those low price levels seems completely unjustified by the current fundamentals.
    • OPEC is likely to take emergency action if oil does not stabilize soon and Saudi Arabia appears willing to act now, if other members act.
  • True Bargains Emerge Amid The Oil Stock Rubble: Abraxas Is Worth More Than $3
    Tue, Dec. 9 AXAS 20 Comments

    Summary

    • Oil demand is likely to increase with prices at these levels, plus, the 5-year futures curve is predicting $80 oil.
    • If you seek real opportunities and bargains now, the small-cap oil stocks are the place to be, not the major integrated oils like Chevron which is not down much.
    • Emotional, fear-based selling, forced margin call selling and tax-loss selling pressure has temporarily and unfairly punished many smaller oil stocks.
    • Abraxas Petroleum has been pushed down to just about 5 times earnings and it is hedged around 80% of its production for the next two years at about $85.
    • This $2.40 stock could be poised for a very significant rally into year end as bargain hunters take notice and as tax-loss selling fades and shorts cover.
  • VOXX International: 6 Reasons Why This $8 Consumer Tech Stock Is A Top Pick For 2015
    Fri, Dec. 5 VOXX 4 Comments

    Summary

    • VOXX International is a little-known consumer tech products company that has some world famous brands and new product launches.
    • This stock has been challenged by some product launch delays in 2014, but it has recently launched a couple of very promising products including "Singtrix".
    • It is also poised to launch the "360Fly" camera in early 2015, which could capture a portion of the GoPro video camera market.
    • With holiday and consumer sales expected to benefit significantly from cheap oil, earnings estimates for VOXX might be too low.
    • VOXX shares are undervalued and could also be poised for a Santa Claus and January Effect rally, as tax-loss selling soon fades.
  • Natural Gas Stocks Are 'Strong Buys' As Seasonal Demand Is Due To Spike
    Thu, Dec. 4 EROC, UNG, CHK 13 Comments

    Summary

    • Not all energy stocks are exposed to weaker oil prices thanks to hedges or because production is mostly natural gas and liquids.
    • Some natural gas stocks have been unfairly dragged down by the pullback in oil and this has created a buying opportunity.
    • In contrast to oil, natural gas prices have been solid for the past couple months, and have started to rise.
    • Natural gas could rise significantly in the coming months and take stocks in this sector higher as well.
  • Eagle Rock: With A Yield Over 10%, This Well Hedged MLP Is Worth Much More Than $3
    Wed, Dec. 3 EROC 27 Comments

    Summary

    • After a $1.34 billion deal, Eagle Rock deserves a fresh look from investors as this stock does not deserve the recent pullback below $3.
    • This stock is significantly undervalued when compared to other MLPs and when considering book value which is about $4.87 per share.
    • Eagle Rock has a very strong balance sheet now and the funds to complete a $100 million share buyback.
    • It also offers a yield of more than 10%, and some analysts believe the company will raise the payout in 2015.
    • About 76% of Eagle Rock's production is gas or natural gas, which has been firm, and it is nearly 80% hedged on oil for the next couple of years.
  • The Oil Stock Crash Is A Major Buying Opportunity
    Tue, Dec. 2 MDR, WG, USO 6 Comments

    Summary

    • The crash in oil stocks is providing long-term investors with a major buying opportunity.
    • Demand for oil remains strong and is likely to rise as cheap oil boosts global economic growth and as U.S. shale growth is curtailed.
    • The current excess supply on the market will eventually be worked off and investors should realize that OPEC is sowing the seeds of the next big spike.
    • Cheap oil stocks are worth averaging into now, especially in retirement accounts, which are ideal for long-term investments.
  • OPEC Does Not Cut Production: What Should Investors Do Now?
    Fri, Nov. 28 CVX, USO, OIL 8 Comments

    Summary

    • OPEC decided to not cut production, but there might be political motivations behind the move which may be temporary at best.
    • Cheap oil is likely to cause consumption to rise significantly, and fuel more global growth which will also fuel more demand.
    • Cheap oil could curtail U.S. shale oil and renewable energy investments, which could ultimately lead to another oil super spike in the future.
    • Investors should use this opportunity to buy shares in beaten down oil companies that have strong balance sheets, significant contract backlogs and international exposure.
  • Petrobras: Buy This 'Black Friday' Oil Stock Bargain While It's Still On Sale
    Thu, Nov. 27 PBR 39 Comments

    Summary

    • A decline in oil and negative headlines has cut Petrobras shares in half over the past few months.
    • This pullback is overdone and negative investor sentiment is creating an ideal buying opportunity for the long-term.
    • Petrobras has set goals to roughly double production by 2020 and analysts expect it to earn nearly $2 per share in 2015.
    • Petrobras shares could rally into late December and January as tax-loss selling pressure ends.
  • OPEC Meets: Why The Oil Sector Might Not Fall, Even If There Are No Production Cuts
    Wed, Nov. 26 USO 5 Comments

    Summary

    • Investors might be putting too much emphasis on the upcoming OPEC meeting.
    • Shorts might have already overplayed their hand by expecting oil to drop much further, even if OPEC fails to cut production.
    • The oil markets might have already priced in this news, meanwhile oil stocks may have already bottomed out.
    • Political factors could be behind the lack of willingness to cut production, and if so, may only be temporary.
    • Investors should focus on the longer term buying opportunity the decline in oil is now offering.
  • Willbros Group: At Just $5, This Undervalued Stock Is A Top Pick For 2015
    Wed, Nov. 26 WG 9 Comments

    Summary

    • Many oil sector stocks are very undervalued, and appear poised for solid gains into 2015.
    • Beaten-down, undervalued stocks like Willbros Group often experience strong rebounds as tax-loss selling ends.
    • Willbros Group shares have been unfairly punished by a decline in oil prices and by a relatively small restatement.
    • A new plan to sell non-core assets, which could generate over $125 million in proceeds and implement a $30 million cost savings plan, is a game changer.
    • Willbros Group has nearly $2 billion in revenues, a $1.7 billion backlog and could earn around 80 cents per share for 2015, which supports a $13 stock price.
  • Ceragon Networks: 5 Reasons Why I Keep Accumulating This Low-Priced Tech Stock
    Tue, Nov. 25 CRNT 9 Comments

    Summary

    • This beaten down tech stock appears to have significant upside potential.
    • With a cheap valuation, rising sales, and a relatively new product line that is rapidly taking market share, the risk to reward ratio may have never been better.
    • With the New Year approaching soon, this stock could rebound as tax-loss selling ends and as bargain hunters take a fresh look at undervalued stocks.
  • After A Parabolic Run, It Is Time To Sell Overbought Airline Stocks
    Wed, Nov. 19 DAL, UAL, VA 10 Comments

    Summary

    • Airline stocks have surged in recent weeks which has provided a potential opportunity to sell.
    • The airline sector has historically been very tough and challenges such as high fuel prices, contagious diseases, and terrorism are not gone forever.
    • Investor sentiment appears way too bullish now and a recent IPO (which surged), could be a major sign of excessive optimism for this sector.
  • Potential Halliburton And Baker Hughes Deal Indicates Oil Stocks Are Probably Too Cheap
    Fri, Nov. 14 HAL, BHI 12 Comments

    Summary

    • Potential Halliburton And Baker Hughes Deal Indicates Oil Stocks Are Probably Too Cheap.
    • Oil stocks are cheap and investors should be using this opportunity to add to their portfolios.
    • The drop in oil prices has not even been for a sustained period of time yet, and do not warrant such a large pullback in many oil stocks.
    • A potential deal for Halliburton to buy Baker Hughes shows that industry executives see value and buying opportunities in this sector.
  • Genworth: Opportunity Knocks
    Mon, Nov. 10 GNW 27 Comments

    Summary

    • A plunge of nearly 50% in Genworth shares creates another major buying opportunity for long-term investors.
    • The market appears to have totally reacted by lopping off about $3 billion in market value, over a charge that was around $300 million more than expected.
    • Genworth can earn its way to an improved credit rating and it is poised to benefit in the future from premium increases and policy lapses and terminations.
    • At just about 6 times earnings and trading for a fraction of book value, this stock is too cheap to ignore.
  • IBM Is Too Cheap To Ignore After Recent Earnings Pullback
    Wed, Nov. 5 IBM 16 Comments

    Summary

    • A recent earnings miss has pushed IBM shares down significantly, but the stock appears to have bottomed-out.
    • Investors can now buy IBM for less than what Warren Buffett paid.
    • IBM continues to grow and innovate, which could result in new products or licensing revenues.
    • IBM is also a solid pick for income investors thanks to an above average yield and a history of raising the payout.
  • Ceragon Networks: Excessive Pullback In Mobile Data Stock Creates A Buying Opportunity
    Tue, Nov. 4 CRNT 11 Comments

    Summary

    • Stocks that experience excessive pullbacks over a disappointing earnings report often rebound, sometimes within days.
    • Ceragon Networks has a solid balance sheet and revenues are rising.
    • As a leading provider of infrastructure for mobile phone networks, Ceragon is poised to benefit from data growth, especially as 4G networks are built globally.
    • At just over $1, this oversold stock is poised to rebound in the short term, and the longer term upside remains even more compelling.
    • Analysts see significant upside to $4 per share and expect the company to report a profit in 2015.
  • Oil Stocks: 3 Reasons To Buy Before A Late-November Spike In Oil Prices
    Mon, Nov. 3 XOM, CVX, USO 15 Comments

    Summary

    • Many investors have become excessively bearish on the oil sector.
    • Many small cap oil stocks are down 40% or more in just the past few weeks which has created bargains.
    • The recent lows in the price of oil may not be sustainable and long term investors should use this pullback as a buying opportunity.
    • In late November an OPEC meeting could result in production cuts and nuclear talks with Iran could breakdown on the 24th, both of which could cause oil to surge.
  • Fifth Street Finance: This High Yield Stock Remains Deeply Undervalued
    Thu, Oct. 30 FSC 9 Comments

    Summary

    • The business development company sector has been under pressure and this has created some bargains.
    • Business conditions remain ideal for this sector and interest rates are likely to remain low even as the Fed ends QE.
    • While some stocks in this sector have begun to rebound, many are still undervalued and trade well below net asset value.
  • Barrett Business Services: An Excessive Pullback Over Earnings Creates A Major Buying Opportunity
    Thu, Oct. 30 BBSI 20 Comments

    Summary

    • A disappointing earnings report can often create a significant pullback and a major buying opportunity for investors.
    • After a haircut of more than 50% on October 29 over what appears to be just a one-time charge, this stock is dirt-cheap.
    • This one-time charge is likely to fade from investors' minds, and bargain hunters and short covering could fuel a major rebound in the coming days.
    • Management expects revenues to grow by about 18% in the coming year, and analysts expect this $18 stock to earn about $3.62 per share in 2015.
    • This company has a solid business model, a strong balance sheet, growing revenues and a history of raising the dividend and share buybacks.
  • The Recent Pullback In AT&T Shares Is A Buying Opportunity For Income Investors
    Tue, Oct. 28 T 18 Comments

    Summary

    • Excessive fear can keep investors from using pullbacks in stocks as a buying opportunity, and yet that is often the best way to magnify returns.
    • Even though the S&P 500 Index has recouped most of its recent losses, there are still stocks that are presenting an ideal buying opportunity for investors.
    • A recent decline in AT&T shares offers the potential for capital appreciation plus a generous yield.
  • Goodyear: Cheap Valuation, Low Oil Prices, And New Technology Could Lead To 50% Upside
    Mon, Oct. 27 GT 1 Comment

    Summary

    • Goodyear shares have declined recently and this has created a solid buying opportunity.
    • With the shares now trading for about 7 times earnings, this stock is too cheap to ignore and analyst price targets suggest about 50% upside.
    • Goodyear is poised to benefit from new product technology in 2015 and from the decline in oil prices.
  • The Pullback In Oil Stocks Is Just Another 'Buy Cheap' Opportunity
    Fri, Oct. 24 MDR, SLB 11 Comments

    Summary

    • With oil prices down and lots of market volatility, many investors have lost sight of the longer-term potential this sector offers.
    • Too much is being made of short-term fluctuations in the price of oil, especially since this has not even been a sustained drop.
    • Many companies in this sector don't even have direct exposure to the price of oil and others have hedges which means profits could remain solid for quite a while.
    • Barron's is suggesting oil could touch $75 and yet still remains very bullish on many oil sector stocks.
    • Investors should realize that this pullback is just another buying opportunity as it has been for the past few years.
  • J.G. Wentworth: Why This Undervalued Stock Could Be Poised To Surge On Strong Earnings Again
    Fri, Oct. 24 JGW 3 Comments

    Summary

    • A recent pullback in small-cap stocks has created another significant buying opportunity.
    • At just $11, this stock appears deeply undervalued and the company is buying back its own shares.
    • This company is an industry leader with a solid business model, offering minimal credit risks and court approved structured settlement deals.
    • Kerrisdale Capital notes that recent merger & acquisition deals imply this stock could be worth $36 per share.
    • This company is likely poised to report another earnings beat which could cause the stock to surge about 30%, just as it did last quarter.
  • A Lot Of Potential Upside Remains In Small-Cap Stocks
    Wed, Oct. 22 BC, CNO, MDR 2 Comments

    Summary

    • While the markets have begun to rebound, many small cap stocks are still well below recent highs.
    • Small cap stocks can continue to rally into the end of the year as fund managers chase for performance.
    • Small cap stocks tend to have less exposure to the rising dollar which also makes this sector attractive.
  • 4 Reasons To Buy Stocks Now Before A Strong Year-End Rally
    Mon, Oct. 20 SPY 4 Comments

    Summary

    • The recent pullback based on fears that could begin to fade, has created new buying opportunities.
    • Lower oil prices are a major positive for the consumer and this could boost the economy.
    • A number of companies are poised to benefit from lower oil prices; at the same time many oil sector stocks have overshot to the downside and are worth buying.
    • A chase for performance and other seasonal and political factors could be setting up the stock market for a year end rally.