NVR, Inc. (NVR) operates as a homebuilder in the United States. It engages in the construction and sale of single-family detached homes, town homes, and condominiums. The company sells homes under the Ryan Homes, NVHomes, Fox Ridge Homes, and Rymarc Homes trade names primarily to first-time homeowners and first-time move-up buyers.

It markets its products in Maryland, Virginia, West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Ohio, New Jersey, Delaware, and Kentucky. The company also offers mortgage banking services to its homebuilding customers, including broker title insurance; and performs title searches in connection with mortgage loan closings. The company was founded in 1979. It was formerly known as NVHomes, Inc. and changed its name to NVR, Inc.

Insituform Technologies Inc. (INSU), together with its subsidiaries, provides proprietary trenchless technologies to rehabilitate, replace, maintain, and install underground pipes.

It operates in two segments, Rehabilitation and Tite Liner. The Rehabilitation segment offers Insituform CIPP Process for the rehabilitation of sewers, pipelines, and other conduits; iPlus Infusion Process, a trenchless method used for the rehabilitation of small-diameter sewer pipelines; iPlus Composite Process for the rehabilitation of large-diameter sewer pipelines; PolyFlex and PolyFold Processes that are the methods of rehabilitating transmission and distribution water mains; Thermopipe Lining System, a polyester-reinforced polyethylene lining system for the rehabilitation of distribution water mains; and iTAP Process, a robotic method for reinstating potable water service connections from inside a water main. This segment also provides Insituform RPP Process used for the rehabilitation of forced sewer mains and industrial pressure pipelines; Insituform PPL Process for the rehabilitation of drinking water and industrial pressure pipelines; Sliplining, a method used to push or pull a new pipeline into an old one; and Pipebursting for replacing deteriorated or undersized pipelines.

PepsiCo. Inc. (PEP) manufactures, markets, and sells snacks and beverages worldwide. It operates through four divisions: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. The Frito-Lay North America division offers snacks, including Lay's potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, branded dips, Fritos corn chips, Ruffles potato chips, Quaker Chewy granola bars, SunChips multigrain snacks, Rold Gold pretzels, Grandma's cookies, Frito-Lay nuts, Munchies snack mix, Gamesa cookies, Funyuns onion flavored rings, Quaker Quakes corn and rice snacks, Miss Vickie's potato chips, Stacy's pita chips, Smartfood popcorn, Chester's fries, and branded crackers.

The PepsiCo Beverages North America division offers beverage concentrates, fountain syrups, and finished goods, under various brands, such as Pepsi, Mountain Dew, Gatorade, Tropicana Pure Premium, Sierra Mist, Propel, Tropicana juice drinks, Dole, SoBe Life Water, Naked juice, and Izze. This division also offers ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks, as well as licenses the Aquafina water brand to its bottlers.

Huron Consulting Group, Inc. (HURN) dredges through financial statements when businesses fail to stay afloat. The firm provides a variety of financial consulting services to corporate clients that are in financial distress or involved in other legal and regulatory disputes. Its consultants offer forensic accounting and economic analysis expertise and often serve as expert witnesses. Huron Consulting also provides a range of operations consulting services to help keep companies out of dire financial straits.

Packaging Corp.(PKG) makes some 2.4 million tons of containerboard annually, most of which is used in PKG's corrugated products manufacturing operations. PKG is a leading producer of corrugated shipping containers, multicolor packaging and displays, and boxes for the meat and agricultural industries. The company operates two linerboard mills, two corrugating medium mills, and nearly 70 corrugated products plants. To support its mills, PKG leases the rights to more than 100,000 acres of timberland in Georgia and Tennessee.

The dividend PKG pays caught my eye. It's $1.00 a share, giving the investor a yield of 3.4%. It takes about 61% of earnings to pay the dividend, but the company's strong balance sheet and cash flow offer some comfort to investors. The dividend has been raised for the past 3 years in a row, starting with 60 cents a share in 2004.

SunPower Corp. (SPWR) makes solar cells and panels, used to generate electrical power from that giant star the Earth revolves around. The company also sells imaging and infrared detector products that SunPower makes using its thin-wafer manufacturing process for solar cells. Conergy is a leading customer (about 25% of sales), along with Solon AG (25%), GE/Plexus, and Integration Associates. Cypress Semiconductor owns more than half of SunPower; the parent company retains control over SunPower by holding all of the Class B common shares in SunPower, giving Cypress voting rights of around 91%.

SunPower is trading in the stratosphere, sporting a P/E of over 100 based on this year's projected earnings. Investors completely believe. Is that belief warranted?

Cooper Tire & Rubber (CTB) is a real wheeler-dealer. As its name indicates, the company makes and distributes tires and rubber products for the transportation industry. Through its North American Tire and International Tire divisions, Cooper makes tires for passenger cars, light trucks, and medium-duty trucks. It also makes tread rubber and related equipment for the retread industry. Cooper's primary customers are independent tire dealers, wholesalers, and retailers. The company sold its Cooper-Standard Automotive subsidiary late in 2004, and has used the proceeds to fund assorted pension plans, reduce debt, and buy back a large amount of the company's stock.

Cooper is the ninth largest tire maker in the world, the fourth largest in North America. They don't depend on the new car market for business. It's the rolling stock on the road where they make money. So even if new car sales are weak, it doesn't affect Cooper.

Countrywide Financial Corp. (CFC) is fighting back. Just ahead of its third quarter results (due October 26 with expectations of a loss of $3.47 a share, according to an analyst at Morgan Stanley), Countrywide is trying to redeem its image as the delivery mechanism for American home ownership. The PR campaign might be worth something, but investors won't be paying much attention.

That's because investors care much more about dollars and cents than they do about image. Of course, they want a company to have the all the right qualities such as integrity, honesty, great service, etc. That's a given. But once a company delivers those, it has to deliver earnings as well. And that's going to be hard for Countrywide to do for a little while.

Respironics, Inc. (RESP) makes respiratory products for use at home, in hospitals, in alternative care facilities, and in emergency situations. Respironics is a leading maker of devices that treat obstructive sleep apnea [OSA], a disorder characterized by cessation of breathing during sleep. Products include its REMstar CPAP (continuous positive airway pressure) system; invasive and noninvasive ventilators for use in hospitals, at home, or other care facilities; oxygen concentrators; peak-flow meters and drug-delivery systems to treat asthma and allergies; and monitoring systems for sudden infant death syndrome [SIDS].

Respironics' price chart looks like the little engine that could. It just keeps chugging higher. While it took a breather in late 2005 and most of 2006, it looks like it's ready to continue upward. The reason: earnings.

A couple of things caught my eye when I saw ISRG. First was the price. Not many stocks sell in the $200+ area. So I had to know how that happened. Second, during my research, I found that it had a reverse stock split in 2003, one that actually worked to the benefit of the company.

Since that split (at $18 a share), the stock has literally taken off, pausing briefly in 2006 before rocketing higher. Can it keep going?

Toro Company (TTC) makes lawn mowers and other products for professional and residential use. Toro's professional products include irrigation equipment, mowers for commercial use, riding and walk-behind power mowers for golf course fairways and greens, trimmers, and utility vehicles. Some professional brands are Toro, Rain Master, Exmark, Irritrol, and Dingo. Its residential products, sold to distributors, home centers, and mass retailers, include walk-behind and riding lawn mowers, lawn tractors, electrical trimmers, and snow blowers. Brand names in this sector include Toro, Rain Master, Irritrol, Lawn Genie, and Lawn-Boy.

Toro's Return on Equtiy pops out at you, in a 33% kind of way. It's been improving since 1999 when it started at 10.3%. Analysts think it will increase to 34% this year and 35% next, with it finally evening out around 33% in a few years. That's a great return on an investment.

IHS, Inc. (IHS) handles the hottest commodity around: information. A publisher of technical documents for clients in the energy, defense, aerospace, construction, electronics, and automotive industries, the company distributes its data in several electronic formats (Internet, intranet, extranet, CD-ROM). Products such as collections of technical specifications and standards, regulations, parts data, and design guides are sold through its IHS Engineering unit. IHS also has an Energy segment that develops and delivers oil and gas industry data on exploration, development, production, and transportation activities.

Here's an interesting fact about IHS: There are 58.4 million shares outstanding, and the Thyssen-Bornemisza family controls about 80% of them. Usually, when concentration is that heavy in one family, the company is in good hands because the owners are very few, and they want a good return on their investment. Having said that, look what happened to Ford.

FTI Consulting, Inc. (FCN) is one of the leading providers of forensic accounting and litigation support services in the US. Its experts offer investigative services to companies confronted with problems such as fraud in order to assist them in their legal defense or pursuit of recoveries. FTI also provides consulting services related to corporate finance and restructuring, such as advice on mergers and acquisitions and performance improvement. Other consulting service areas include economics, strategic and financial communications, and technology. FTI's main clients are large business enterprises and major law firms.

FTI has taken off in the last year, going from $19.50 a share late in 2006 to a current all time high of $53.67. In 1999, you could have bought all the shares you wanted at $1.10 (all prices split adjusted for two 3 for 2 stock splits).

Kirby Corp. (KEX) hauls cargo, and the only curbs are riverbanks. The company is the largest inland tank barge operator in the US. Its fleet, operated by subsidiary Kirby Inland Marine, consists of about 900 barges and more than 240 towboats. The vessels are used to transport liquid bulk cargo such as petrochemicals, crude and refined petroleum products, and agricultural chemicals. Exxon Mobil affiliate SeaRiver Maritime accounts for about 12% of Kirby's sales; longtime customer Dow Chemical accounts for about 11%. Overall, marine transportation generates more than 80% of Kirby's revenue. The company also is a leading provider of diesel engine services for marine, rail, and industrial customers.

Kirby has done well over the last 5 years, going from a low of $10.20 to a recent all time high of $42.40 (prices adjusted for a 2 for 1 split in 2006). While it hasn't been without a few small downdrafts, the stock has performed admirably and fairly consistently. Now, can it keep haulin'?

Kinetic Concepts, Inc. (KCI) makes its bed and has no problems lying in it. The company's products include hospital beds, specialized mattresses, and pressure relief and pulmonary care systems. Such "therapeutic surfaces" treat and prevent complications associated with patient immobility, such as pressure sores and buildup of fluid in the lungs. Kinetic Concepts also makes vacuum-based wound care systems and critical care therapy systems which rotate immobilized patients to reduce the incidence of pulmonary complications. Customers include acute and long-term care facilities, home health agencies, wound care clinics, and individuals in the US and abroad.

One number pops out for Kinetic Concepts: Return on Equity at 55%. That was down from 89% in 2005. This year analysts expect 37%, then 31% next year. Longer term, analysts predict 23.5%. So it's diminishing but what a great number to start with. And 23.5% return on equity is still a very meaningful return. Another impressive number: officers and directors own a little over 25% of the stock.

Dreamworks Animation SKG (DWA) produces computer animated features -- including the box office hits Antz, Shrek, and the record-breaking Shrek 2 (the highest-grossing animated film ever). DreamWorks Animation develops content that is distributed and marketed by Paramount Pictures. DreamWorks Animation previously released films in collaboration with Aardman Animations (2005 Best Animated Feature Oscar winner Wallace & Gromit: Curse of the Were-Rabbit and 2006's Flushed Away); however, the partnership ended in 2007. The 2007 release of Shrek the Third again broke records. In 2004 former parent DreamWorks spun off the company.

Total System Services (TSS) is one of the largest credit card transaction processors in the US. It serves bank and private-label card issuers around the world. Offerings include credit authorization, payment processing, account management, e-commerce services, card issuance, and such customer-relations services as call-center operations and fraud monitoring. Synovus Financial, through subsidiary Columbus Bank and Trust Company, owns more than 80% of TSS.

It's the Chinese connection that caught my eye. While it's only 3 banks currently, the potential transactions China represents is extremely large. Of course, there's competition for all that business, but TSS has an established name and strong credibility so it will certainly get its fair share, if not more. In other overseas markets, TSS is beginning to process in Brazil, giving it a stronghold to service all of South America.

Arthrocare Corp. (ARTC) makes tissue disappear with a wave of a wand. The company's proprietary Coblation technology uses radio frequency energy to remove soft tissue from the body. Its Arthroscopic Surgery System lets surgeons use specialized wands to focus the energy and minimize damage to nearby healthy tissue, simultaneously sealing small, bleeding vessels. First used in arthroscopic procedures to repair joints, the electrosurgery system product line now includes equipment used in ear, nose, and throat procedures; spinal and neurological surgery; cardiology and gynecology; and cosmetic surgery.

Arthocare's earnings are pushing this stock upward. In 2004, earnings per share were 61 cents on revenues of $154 million. This year, analysts expect EPS of $1.45 on revenues of $315 million (note earnings are growing faster than revenues). Next year, they predict $1.95.

Altria Group Inc. (MO) announced it will spin off its wholly owned cigarette company Philip Morris. This is the same company that spun off Kraft Foods (KFT) last year. Is Altria spinning out of control?

Hardly. In fact, it's getting more in control, of its operations and its identity. One of the problems Altria Group (formerly Philip Morris Inc.) has always had is that it is a conglomerate. Wall Street doesn't know exactly how to value a large company with many different operating entities because each subsidiary is competing in a different industry. The conglomerate is a hybrid that is running on several different fuels so what is it really worth? Getting full value for each operating group is hard because its results are hampered (or helped) by results from other operating groups held by the parent. By spinning off Kraft and now Philip Morris, Altria is getting more identifiable. The subsidiaries will also gain by being able to trade on their own merits, away from any influence of sister subs.