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Rock Bottom Stocks
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3 Stocks That Could Potentially Double Your Portfolio Over The Next 12 Months!
By
Shane H. Rawlings Updated 11/26/07
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Chart reprinted permission Qcharts, http:www.quote.com
The above weekly chart is of NutriSystems Inc. – ticker NTRI. NutriSystem, Inc. provides weight management and fitness products and services in the United States. Its weight management program consists of a pre-packaged food program and counseling.
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The stock appears to be completing an ABC correction at key Fibonacci support around $29 per share. I expect these levels to hold and for the stock to start a rally from these levels that will ultimately carry price back near the old highs around $75 and share. Eventually the stock could surpass its old highs and move substantially higher.
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The trailing P/E on this stock is 9.62 with a forward looking P/E of 8.96, both of these are incredible valuations meaning we are buying this stock at a deep discount to its true value. The operating and profit margins are very healthy with a ROE of 87%. The company's quarterly revenue growth is 61% and quarterly earnings growth is 69%, again very outstanding. The company has on debt and about 87 million in cash. From a technical and fundamental standpoint this company appears to be a great bargain. The stock can be purchased around $25 a share with a protective stop at $17.50.
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Chart reprinted permission Qcharts, http:www.quote.com
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The above chart is of Dress Barn Inc. - ticker DBRN. The Dress Barn, Inc. and its subsidiaries operate a chain of women's apparel specialty stores principally under the names dressbarn, dressbarn woman, and maurices' in the United States. It offers casual clothing, career wear, leather and outerwear, dresses, suits, woven tops, jewelry, and accessories.
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Over the last several years the stock has been in a correction against the prevailing uptrend. I believe this correction is near completion. Once complete the stock should resume the uptrend and ultimately make new all-time highs above the old all-time high of $28.
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The current P/E ratio is 10 making this stock incredibly undervalued. The price to book is 1.79, the return on equity is 22%, with quarterly earnings growth of 37%. From both a fundamental and technical viewpoint this stocks is very attractive at these levels. The stock can be purchased for around $14 and you could place a protective stop at $9.80.
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Chart reprinted permission Qcharts, http:www.quote.com
The above chart is of Nam Tai Electronics Inc. - ticker NTE. Nam Tai Electronics, Inc. provides manufacturing and design services to telecommunication and consumer electronic original equipment manufacturers. It has three segments: Consumer Electronics and Communication Products (CECP); Telecommunication Components Assembly (TCA); and LCD panels (LCDP).
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For the last four years NTE has been tracing out a very large A-B-C correction. My interpretation is that the correction is now ending and should soon start the next bullish advance. The company has a very attractive P/E ratio of 8.55 and a price to book of 1.51. Their return on equity is 17.53% and are otherwise very strong financially with 257 million in cash and only 9 million in debt. It also has a forward annual dividend rate of 7.3%. The stock can be purchased around $11 a share and a protective stop could be placed at $7.70