Check This Out

Hi all,

Firstly, please check out this page to see all my articles (22) posted on Seeking Alpha.

New Articles

Hi All,

Here are more articles I recently posted on Seeking Alpha.

1 and 2

Click on the links to read the articles.

Happy Trading 

Kang Wei

Some Articles On Seeking Alpha

Hi all,
I have been working on these articles (and published them) over the past week [Seeking Alpha], please click on the links provided to read the articles:

1. 8 Consumer Stocks With 40 Years Or More Of Consecutive Dividend Increases

2. Visa, A Solid Investment But A Poor Time To Buy

3. 4 Quality High-Dividend Stocks With Sustainable Yields

4. McDonald's For Long-Term Capital Appreciation

5. McDonald's: Entering The Position

6. Real Reliable Dividends: 6 Stocks Paying Dividends For 100 Years Or More

Happy Trading!

Kang Wei

2 New Articles On Seeking Alpha

Hi all,
Got 2 new articles on Seeking Alpha yesterday.
Here are the URLs:
Article1
Article2
Article 2, "Buy Chevron For Steady Capital Appreciation Over The Long Term"
 is an editor's pick. Enjoy!

Happy Trading!

Article No.4

Hi all,

Got a new article, on Seeking Alpha again. Follow this link to read the article.

Happy Trading

Kang Wei

More Positions

Hi all.

Today, I'm just going to talk about a few of my positions and why they are good to buy.

FULL LIST OF POSITIONS

Precious Metals Stocks/ETFs:

Yamana Gold (AUY)

SPDR Gold ETF (GLD)

I AM GOLD (IAG)

Newmont Mining (NEM)

Southern Copper (SCCO)

Mkt Vectors Gold Miners (GDX)
Mkt Vectors Junior Gold Miners (GDXJ)

Silver ETF (SLV)

Gamco Natural Resources ,Gold ETF (GNT)
Silver Standard Resources (SSRI)
Silver Wheaton (SLW)

Here is a list of positions I am going to take in my portfolio. I think gold is in the start of a bull market after the correction from $1,900 to $1,500. Silver and other commodities are also well-positioned to make a new bull run, after their bear markets. Other commodities like corn and wheat, which have been holding strong over the past years due to bad weather conditions, are likely to do well along with other commodities. Therefore, looking at gold bouncing off its 50-day SMA as seen in the chart, I feel that it is timely to write a post like this. I expect to hold the aforementioned positions to next year or so after the indication that the commodity bull market is over. 

3 Biggest Positions: 

Berkshire Hathaway Cl. B (BRK.B)

Disney (DIS)

Exxon Mobil Corp. (XOM)

I would like good anchors for the portfolio as the portfolio contains a variety of other small-cap stocks, which are deemed more risky. Therefore, a few stable, widow-and-orphan stocks would be ideal.

Berkshire Hathaway Cl. B

STRONG BUY

Price Target: $95

Price Now: $88.51

Low Risk

Berkshire Hathaway is the company that Warren Buffett owns, and I have mentioned that I owned this stock since early this year, when I started this blog. It was trading around $80 then, and if it goes down to that area for any reason, I would definitely accumulate more shares. I have confidence in Warren Buffett's doings and beliefs, and I believe that it will do good for the company as a whole. Although Bershire pays no dividends, in my opinion, it may actually be better if the company keeps the money for other operations instead of giving it to shareholders. This is a five-star stock to me and is rated as a strong buy by me, with a $95 price target. 

Walt Disney Co. 

BUY

Price Target: $55

Price Now: $51.79

Low Risk

People love entertainment, and they cannot live without it. Can you imagine a world without movies and music? The answer is no. Therefore, for this reason alone, Disney will continue to thrive in the years to come. Additionally, Disney is a pretty diversified stock, not only focused on films and TV shows, it also owns theme parks and sells items to consumers. We do not know where else Disney will try to make money out of, but what we know for sure is that this continued expansion will benefit shareholders over the long term. At 17 times earnings now, it may be considered slightly overvalued but its long term prospects are very favorable, with no signs of it losing popularity anytime soon. Disney also offers a 1.16% dividend that I believe, will be grown in the future like how it has always grown them before. This is a five-star stock by my standards and is rated a buy by me, with a $55 target.

Exxon Mobil Corporation

STRONG BUY

Price Target: $99

Price Now: $92.19

Low Risk

Oil is a precious commodity, on high demand nowadays. With so many uses, Exxon Mobil's sales are bound to grow over the long term. Management is also prepared for growth as they plan to invest $37B in capital and exploration spending over the next 5 years and has many plans to expand further. Having operations in Bakken and other oil-rich areas will prove to be beneficial to the company over the long term. Additionally, management have been purchasing shares in the past 10 years. In 2002 it had 6.7B shares outstanding, and now it has only 4.6B shares outstanding, which is a good sign, as investors now own a bigger portion of the company with the same amount of shares. Along with the fact that the company company has very little long-term debt (LT Debt/Equity: 0.05), this proves that the company is earning enough to give so much back to the shareholders and still have enough funds to expand itself. It also pays a palatable 2.47% dividend. Therefore, this a five-star stock by my standards and is rated a strong buy by me, with a price target of $99. 

Happy Trading

Kang Wei

3 Large Caps With Value, Strength And Stability

Hi all,
Yet another article for you. This time it is a list of 3 great stocks screened. Follow the link to read it
URL:http://seekingalpha.com/article/936881-3-large-caps-with-value-strength-and-stability

Happy Trading!

Article on Seeking Alpha

Hi all,
I am back with a new article for you. Follow the below link to read the article which is on Seeking Alpha.
Article: Jos. A Bank, Tailor-Made For Success

EZCORP (EZPW), A Great Value Play

I am back with an article for you. I am also trying to post this on Seeking Alpha. After EZCORP's CFO Stephen Stamp left the company, the stock dropped even more after already dropping quite a fair bit because of declining sales (mainly because of declining Gold prices). I think that it is oversold now.

EZCORP, A GREAT VALUE PLAY

With unemployment around 8% for the past 3 years or so, and the Dow hitting north of 13,500, and with the percentage of people bullish on the market now rising again, some may think that another correction may be imminent. So is there a way to benefit even if the stock market or the economy declines? The answer is an obvious yes, and there are many ways for one to do it, but the stock today is one example of a great recession-proof stock.

EZCORP (EZPW) is a pawn shop operator. Although it is commonly viewed as one of the more "low-class" financial stocks, it may be the one that is outperforming more famous financial stocks like J P Morgan Chase (JPM) or Morgan Stanley (MS).

A snapshot of the company's information:

Price (10.10.2012)	$19.29 (42.2% from high)
Market Cap	1.02B
Income (2011)	141.5M (P/E:6.94) (Forward P/E:5.99)
Sales (2011)	968.2M (P/S: 1.02)
Book Value per Share	$15.34 (P/B:1.26)
EPS Growth Past 5 Years	28.5%
ROE	20.07%
Current Ratio (Assets/Liabilities)	3.19

It is easy to see how much a bargain the stock is in terms of price at the moment, with a P/E of just 6.94 and a forward P/E of 5.99. Even so, EZCORP had seen EPS growth of 28.5% over the past 5 years, which is fabulous growth, and is likely to grow some more. It being expected to grow at a whooping 15% over the next five years. Along with the fact that recessions are inevitable and that many viewing places like EZCORP as places to get instant and easy-to-get money, all these reasons makes it a good choice for a long term investment that will serve an investor's portfolio well.

At a newly created 52-week low of $19.29, I'm sure one would like to know why it dropped so much before investing in it. The reason for this horrible drop is actually the drop in gold prices over the past year. As gold prices declined, EZCORP found itself buying gold previously at higher prices than how much it is selling it at now. Missing 3 earnings estimates in a row now, it is not favoured on Wall Street, especially given that its stock crashed more than 40% since its high, as stated above. But even so, it is still financially stable and growing very well in Mexico and Great Britain, where there are many more opportunities for it to grow, especially in South America, where it is still developing. Furthermore, with Fed Chairman Ben Bernanke announcing QE3, gold prices are expected to rise, which would also increase EZCORP's earnings. All these gives the company's stock huge potential to grow.

EZCORP's chart: 

Now that it is decided that the stock is one worth the buy, here is how to enter the trade.

EPS 2007	0.92
EPS 2008	1.21
EPS 2009	1.42
EPS 2010	1.96
EPS 2011	2.43
EPS 2012 (Est.)	2.79

With the company on its way to achieving its 2012 estimate of $2.79 per share, we shall use that number as a starting point for our calculations instead of using the 2011 number. Our aim is to achieve a 15% year over year gain for 5 years on EZCORP.

With an expected 15% growth rate, the calculations will be based on a more conservative 11% growth the EPS should be $4.92 in 2017 as shown by the chart below.

EPS 2013 (est.)	3.12
EPS 2014 (est.)	3.50
EPS 2015 (est.)	3.92
EPS 2016 (est.)	4.39
EPS 2017 (est.)	4.92

Assuming that its P/E ratio rises to its 5-year average of 11.29, its price would be at $55.55, 177% above yesterday's closing price. To achieve a 15% gain year over year, $27.62 is the maximum price that it can be bought at. Its price at the moment, more than 25% below $27.62, is obviously a Strong Buy to me.

But, as EZCORP is in a strong downtrend, it is advised that one does not put in all his money reserved to buy the stock into it immediately, or rather spread the money into portions and buy when it dips further. Here is a list of potential buy points to consider:

Price Now	$19.29
5% Lower	$18.33
10% Lower	$17.36
15% Lower	$16.40
20% Lower	$15.43
25% Lower	$14.47

(Eg, Buy 100 at $19.29, 100 at $18.33 and 100 at $17.36)

With the exception of failing businesses, a company's stock would not go down forever. Although EZCORP's price is in a downtrend and looks as if it may drop further, delve deeper into its background and one will find that it is actually a company with huge potential and one worth it to be bought on more dips.

Happy Trading

-Kang Wei

Position Update

I am short Manchester United (MANU) at $13.71, Long Eni (E) at
$43.94, Long Novartis (NVS) at $ 60.02 and Long Total S.A (TOT) at $49.52.

Stocks I am Considering:
Main Street Capital (MAIN)
Nestle (NSRGY)
Heineken (HINKY)
GAMCO Gold ... Fund (GGN)

My most successful position is my Facebook short position I initiated at $28.83. Now at $19.21, it is a 33.4% gain for me. Still holding it with a target price of $14.40, which will give me a 50% gain.

Risks: The market is a few points away from its 2012 top and it may be risky for some.

Happy Trading!

The VXX, And How To Profit From It

For those who are not familiar with the VIX, it tracks the volatility of the S&P 500 index. It is also often referred to as the "fear index" as it goes the opposite way when the market goes one way. As the market is going up these days (S&P 500 up 11.4% YTD) ,the VIX have dropped a lot, way below its normal trading range of 20-30,to around 15 now. The VIX has not seen these levels since 2006, when it fell as low as 10. On the other hand, during the 2008 recession, the VIX soared as high as 80 and in the two pullbacks in May 2010 and August 2011, to around 40
You can view the chart here: (http://finance.yahoo.com/echarts?s=%5EVIX+Interactive#symbol=%5Evix;range=5y;compare=;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;)

Onto our main topic for today, the iPath S&P 500 VIX Short Term FuturesETN (VXX), the ETN that tracks the aforementioned VIX, has lost up to 80% to $11.70, at a 52-wk low after hitting a peak of $60 during the 2011 August pullback. This means that if the market declines again like the past 2 pullbacks before rising to new highs (which is highly possible), the VXX is sure to soar. It may not rise as high as the high of almost $60 last August, but this could potentially be a multi-bagger. Another good buy is the ProShares Ultra VIX Short-Term Fut ETF (UVXY), which tracks the VIX too, but is twice more volatile by the VIX itself. This means that if the VIX drops by2%, the UVXY is supposed to drop by twice more, or 4%. The UVXY is also at a 52-week low of $5.51 after hitting a top of $244.80 (split-adjusted) shortly after it was introduced last October. The UVXY would move about twice what the VXX would move, therefore, this ETF should only be traded if one is very sure about the market's direction.
But, even if your direction and your timing is correct, you could lose money in the VXX. If you did not already know, ETNs lose value automatically. If you compare the VXX chart above to the VIX chart in the link above, you would realise that the VXX drops much more compared to the VIX. This means that if your sentiment is correct but the action takes too long to unfold, you may also lose money. These are the reasons why I will never put more than 5% of my money in this ETN. How would I counter this? Well, options would be a good way to do this. By this way, you can hold shares and not lose money even as the VXX plummets.
What I would do is a collar. Buying a collar is equal to buying insurance for your   position. The ideal trade for the VXX, now at $11.70 would be:
SELL a Sep 2012 Call (strike price 15)
BUY a Sep 2012 Put (strike price 11)
BUY 100 shares of VXX

There are three scenarios where the VXX goes. Let me show you how you can profit from each of these ways.

Scenario #1, VXX falls below $11
If the VXX falls below $11, the call would expire worthless and you would get to keep the premium. Not only that, the put would be profitable too. These profits would neutralise your losses in the your VXX shares, and you may even pocket a profit, instead of a loss when you only buy VXX shares.

Short Call Profit
Long Put Profit
Shares Loss
Overall Profit

*Please note that the profits from the options may not be enough to neutralise the losses on the stock if the price falls too low. But, in the next scenarios, where the price is above $11, the overall return will surely be a profit.

Scenario #2, VXX rises above $11
If the VXX rises to around $14-$15 (I'll tell you why I put it in this range later), you would also profit. The call would expire worthless and you would get to keep the premium. The put, on the other hand, would expire worthless. But, you would not make a loss. The 100 VXX shares bought at $11.70 would give you a good profit.

Short Call Profit
Long Put Loss
Shares Profit
Overall Profit

Scenario #3, VXX rises above $15
You should immediately roll your short call to a new strike when the VXX price edges to $15. If the call option expires above $15, you would be required to deliver the shares to the call-buyer at $15 and the put would expire worthless. Although you could still make a profit, the shares would be lost. Remember, the aim was to HOLD shares without losing money, not lose shares after gaining money. Therefore, one should roll the strikes of the call up every time the shares reach around $14.70, in the VXX's case. I would roll the call up by $3-$5, so I do not have to do this too frequently.

Short Call Profit
Long Put Loss
Shares Profit
Overall Profit


You can do this repeatedly as months pass. After the September options expire, you could do it on the October ones, then the November ones, for as long as you want. This may sound very easy, but you will not understand its difficulties before you try it out yourself. I encourage you to use a simulator before trying out with real money. Here is a good article about this method from Optionetics, describing the both the method and the difficulties more in depth: (http://www.optionetics.com/marketdata/article.aspx?aid=15510)

Finally, I would like to wish Singapore, my country, a very Happy 47th birthday.

Happy Trading!

Cup & Handle??

There is an evident and very nice cup and handle pattern forming in Express Scripts (ESRX). This one would be a buy once it closes above $59.50. I also recommend an article from seeking alpha about Seagate Tech (STX), with the opportunities that it presents. Below is the URL.
URL:http://seekingalpha.com/article/768511-seagate-technology-investors-are-missing-the-point

That's all for today!

Happy Trading!

The Positions

Here are my positions, updated 31st July 2012. I will give you regular updates to my portfolio after this date

The Profits/Losses, July 31st


Long Positions
1.  Disney DIS (Long Term)
Bought at  $43.56, Now $49.80  (14.33%)   Recommended
2. Kimberly Clark KMB (Long Term)
Bought at $78.32, Now $87.93  (12.27%)    Recommended
3. ExxonMobil XOM (Long Term)
Bought at $81.20, Now $87.56  (7.83%)
4. Mellanox MLNX (Short Term)
Bought at $95.45, Now $106.55 (11.63%)
5. Chevron CVX (Long Term)
Bought at $101.23, Now $109.82 (8.49%)
6. Berkshire Hathaway Class B BRK-B (Long Term)
Bought at $80.39, Now $85.23 (6.02%)
7. EZCORP EZPW (Medium Term)
Bought at $23.46, Now $22.52 (0.44%)  Recommended
8. Sturm, Ruger & Co. (Medium Term)
Bought at $37.47, Now $49.21 (31.33%)   Recommended
9. Hershey HSY (Medium Term)
Bought at $69.23, Now $72.17 (4.24%)
10.TJX Comps. TJX (Long Term)
Bought at $42.38, Now $44.90 (5.95%) 


Short Positions
1. Facebook FB (Short Term)
Sold at $28.86, Now $23.15 (24.67%)


Risks: This is a simulated account. Please research more before considering to buy.

5 Rock-Solid Small Caps To Beat The Market

The 5 stocks in this article had been chosen from a screen from finviz.com. I screened for small-caps (cap 300M to 2B) with strong EPS growth numbers, little or no debt, good ROE and ROA numbers and finally, good valuations(P/E of no higher than 20).

Shooting For #1, Sturm, Ruger & Co. (RGR)

I recommended this stock in a previous article. Here is a bit of what it does:

Sturm, Ruger & Company, Inc. engages in the design, manufacture, and sale of firearms in the United States. It offers single-shot, autoloading, bolt-action, and sporting rifles; shotguns; rim fire autoloading and center fire autoloading pistols; and single-action and double-action revolvers. The company also manufactures and sells accessories and replacement parts for its firearms. In addition, it provides investment castings made from steel alloys directly or through manufacturers' representatives. The company sells its firearm products through independent wholesale distributors to the commercial sporting market under the Ruger name; and exports its firearms through a network of commercial distributors and directly to law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1948 and is based in Southport, Connecticut.

Here are some numbers:

12mth trailing P/E: 16.91 (Cheap)

Forward P/E: 14.30 (Cheap)

P/S 2.18 (Very Good)

P/C 8.31 ( Good)

Quick Ratio 2.93 (Excellent)

Current Ratio 3.08 (Excellent)

Debt/Equity 0% (Excellent)

EPS Growth Past 5 Years 117.6% (Excellent)

Sales Growth Past 5 Years 14.4% (Very Good)

Quarterly Sales Growth 48.9% (Excellent)

Quarterly EPS Growth 89% (Excellent)

ROA 24.52% (Excellent)

ROE 35.36% (Excellent)

ROI 31.88% (Excellent)

Gross Margin 35.43% (Very Good)

Profit Margin 13% (OK)

Short Float: 30.63% (Amazing)

EPS PAST 5 YEARS (16.4% annually)

2007 0.46

2008 0.43

2009 1.42

2010 1.46

2011 2.09

As you can see, its numbers are quite desirable to any investor's eye, with a list full of positive figures. The EPS is growing at a speedy but stable pace, just right for me. The 31% short float is just a bonus, as short-covering will only drive prices higher. Furthermore, not many analysts are covering this stock. This is an extra advantage. Wall Street has not found this jewel yet. On the technical aspect, it pulled back from a high of $58 to its current price of $41. The pullback was due to the stopped order collections because of overwhelming demand. The recent pullback gives investors a chance to buy it. It also has a dividend of 1.97%.

Market Cap: 787.45M

Sales: 365.71M

Income: 47.55M

Cash Per Share: $5.00

Book Value: $7.82

Price: $41.13

No Cheaper Choice, EZCORP (EZPW)

EZCORP is a pawn shop, I am attracted by its cheap valuations of 6.9X 2013 earnings, a level not seen since the 2008 to 2009 recession.

Here is a bit of what it does:

EZCORP, Inc. provides specialty consumer financial services. The company offers pawn loans that are non-recourse loans collateralized by tangible personal property, including jewelry, consumer electronics, tools, sporting goods, and musical instruments, as well as sells merchandise consisting of second-hand collateral forfeited from its pawn lending activities or purchased from customers, and new or refurbished merchandise from third party vendors. It also provides a range of financial services, such as signature loans consisting of payday loans, installment loans, and lines of credit; and auto title loans, which include single payment auto title loans, and auto title lines of credit. In addition, the company offers fee-based credit services to customers seeking loans; and advice and assistance to customers in obtaining loans from unaffiliated lenders, as well as provides debit cards. As of September 30, 2011, it operated a total of 1,111 locations consisting of 433 pawn stores under the EZPAWN or Value Pawn names, and 436 financial services stores under the EZMONEY name in the United States; 178 pawn stores under the Empeo Fcil or Empee Su Oro names in Mexico; 49 financial services stores under the CASHMAX name in Canada; and 15 financial and retail services stores under the Cash Converters name in Canada. Further, the company operates as a franchisor for 13 franchised Cash Converters stores in Canada. EZCORP, Inc. was founded in 1989 and is headquartered in Austin, Texas.

Here are some numbers:

12-mth Trailing P/E: 8.51 (Very Cheap)

Forward P/E: 6.95 (Very Cheap)

P/S 1.27 (Very Good)

P/C 25.12 ( Good )

Quick Ratio 2.78 (Excellent)

Current Ratio 3.61 (Excellent)

Debt/Equity 18% (Very Good)

EPS Growth Past 5 Years 28.5% (Excellent)

Sales Growth Past 5 Years 22.4% (Excellent)

Quarterly Sales Growth 20.18% (Excellent)

Quarterly EPS Growth 15.41% (Very Good)

ROA 16.44% (Excellent)

ROE 20.67% (Excellent)

ROI 18.66% (Excellent)

Gross Margin 61.99% (Excellent)

Profit Margin 14.82% (OK)

Short Float 5.05% (NA)

EPS PAST 5 YEARS 12% ANNUALLY

2007 0.88
2008 1.21
2009 1.42
2010 1.96
2011 2.43

The numbers here, like the first stock, are quite desirable to the investor's eye too. These are the kind of stocks I am looking for. On the technical aspect, if you take a look at the chart I put up below, EZCORP 's stock price has fell quite a big deal from a high of $33 to its current price of $23.37. The large gap in late April was mainly because of an earnings miss. This was mainly due to the dwindling amount of people using gold as collateral. They now use other things that the company accepts, from electronic products to sporting goods. Even though the incident reduced earnings and profit margins, it is still growing at a comfortable rate. I also think that the earnings miss is obviously overblown. A 30% pullback is no joke, but this just creates opportunity for investors to buy.

Market Cap: 1.20B

Sales: 942.39M

Income: 139.51M

Cash Per Share: $0.93

Book Value: $14.83

Recc Price: $23.46

From:finviz.com

The Next Ross (ROST), Gordmans Stores (GMAN)
For those familiar with Ross Stores , it is a stock which offers off-price retail apparel and it has been very successful over the last 10 years. Gordmans' services are around the same. It sells apparel, furniture and other accessories, more like a combination of Ross Stores and Bed Baths And Beyond (BBBY). Its IPO was in 2006 and is just starting up, and I see that it has lots of potential for growth in the future from the numbers I will list later.
Here is what it does:

Gordmans Stores, Inc. operates department stores under the Gordmans name in the United States. Its merchandise selection includes a range of apparel, footwear, home fashions products, and accessories, including fragrances. The company offers apparels, including young men's, men's, juniors', women's, team, plus sizes, maternity, and children's clothing comprising offerings for infants, toddlers, boys, and girls; and accessories consisting of designer fragrances, intimate apparel, handbags, sunglasses, fashion jewelry, legwear, and sleepwear. Its home fashions products consist of wall art, photo frames, accent furniture, accent lighting, candles, ceramics, vases, seasonal decor, floral and garden, gourmet food and candy, toys, luggage, pet accessories, housewares, decorative pillows, fashion rugs, and bedding and bath products. As of January 28, 2012, the company operated 74 stores located in various shopping center developments, including regional enclosed shopping malls, lifestyle centers, and power centers in 16 Midwestern states. Gordmans Stores, Inc. was founded in 1915 and is headquartered in Omaha, Nebraska.

Here are some numbers:

12-mth Trailing P/E: 13.25 (Cheap)

Forward P/E: 10.14 (Cheap)

P/S 0.60 (Excellent)

P/C 8.22 (Very Good)

Quick Ratio 0.88

Current Ratio 1.93 (Very Good)

Debt/Equity Ratio 1% (Excellent)

EPS Growth Past 5 Years 49.86% (Excellent)

Sales Growth Past 5 Years 5.58% (OK)

Quarterly Sales Growth 13.84% (Very Good)

Quarterly EPS Growth 9.66% (Very Good)

ROA 16.22% (Excellent)

ROE 35.61% (Excellent)

ROI 29.17% (Excellent)

Gross Margin 42.73% (Very Good)

Profit Margin 4.51% (Not Good)

Short Float 1.28% (N/A)

EPS PAST 5 YEARS 55.2% ANNUALLY

2007 0.13
2008 0.15
2009 0.99
2010 0.89
2011 1.30

More good numbers on this stock. I like the cheap valuation and the low debt (Long Term Debt: 189K). This low debt tells investors that the company earns enough to fund all its operations. This is a good sign. Gordmans , like EZCORP , has also pulled back quite considerably from its high. I am unsure why there was a pullback after better-than-expected earnings, but this stock, like the two other stocks mentioned, gives investors and opportunity to buy great stocks at low prices.

Market Cap: 352.01M

Sales: 574.66M

Income: 25.96M

Cash Per Share: $2.16

Book Value: $4.45

Recc Price: $18.31

From: finviz.com

The Budding Apparel Company, rue21 (RUE)

rue21 is a small-cap apparel company whose EPS is growing nicely and steadily. Sales and other aspects are going good too. That is the main reason why I like this stock.

Here is a bit about it:

rue21, inc. operates as a specialty apparel retailer in the United States. It provides fashion apparel and accessories for girls and guys, including graphic T-shirts, denim, dresses, shirts, hoodies, belts, jewelry, handbags, footwear, intimate apparel, and other accessories. The company sells its apparel and accessories under the brand names of rue21, rue21 etc!, tarea by rue21, Carbon and CJ Black, and Carbon Elements; and fragrances under the rue by rue21, revert eco rue21, CJ Black, sparkle rue21, Pink Ice by rue21, MetroBlack rue21, tarea by rue21, twentyone black, runway21 by rue21, Carbon Elements, Intense by rue21, and rue21 etc! brand names. As of May 24, 2012, it operated 809 stores in 46 states. rue21, inc. was founded in 1976 and is headquartered in Warrendale, Pennsylvania.

Here are some numbers:

12mth trailing P/E: 15.75 (Cheap)

Forward P/E: 12.40 (Cheap)

P/S 0.79 (Excellent)

P/C 7.69 ( Good)

Quick Ratio 0.75 (OK)

Current Ratio 1.63 (Very Good)

Debt/Equity 0% (Excellent)

EPS Growth Past 5 Years 34.27% (Excellent)

Sales Growth Past 5 Years 27.51% (Very Good)

Quarterly Sales Growth 18.94% (Excellent)

Quarterly EPS Growth 20.35% (Excellent)

ROA 12.37% (Excellent)

ROE 29.90% (Excellent)

ROI 21.55% (Excellent)

Gross Margin 37.71% (Very Good)

Profit Margin 5.16% (OK)

Short Float: 19.76% (Amazing)

EPS PAST 5 YEARS (23.5% annually)

2007 0.40

2008 0.55

2009 0.96

2010 1.21

2011 1.55

On the technical side, like the other stocks mentioned, it has also pulled back considerably from its peak. This company has no debt at all, and has not incurred any since 2009. This only shows how stable and fast-growing its earnings are, enough to not borrow any money for three consecutive years. Additionally, its short float is at a really high 19.76%. When investors find the potential of the company, I believe that the short squeeze will bring prices even higher. This pullback gives investors a chance to grab these great stocks at cheaper prices.

Market Cap: 626.0M

Sales: 793.04M

Income: 40.93M

Cash Per Share: $3.34

Book Value: $6.57

Recc Price:$25.53

from: finviz.com

Semiconductor Superpower, GT Advanced Technologies (GTAT)

GTAT has fallen almost 50% from its peak in March. Its solid fundamentals and cheap price has attracted me to take a look at it.

Here is a bit of what it does:

GT Advanced Technologies Inc. provides polysilicon production technology and crystalline ingot growth systems, and related photovoltaic (PV) manufacturing services for the solar industry worldwide. It also offers sapphire growth systems and material for the light emitting diode (LED) and other specialty markets. The company's principal products comprise silicon deposition reactors and related equipment, which are used to produce polysilicon for applications in silicon-based solar wafers and cells; directional solidification (DSS) furnaces and related equipment used to cast multicrystalline and MonoCast crystalline silicon ingots, which are used to make PV solar wafers and cells; and sapphire crystallization furnaces, which are used to crystallize sapphire boules for use in the manufacture of LED devices. In addition, it provides equipment, technology, and engineering services for the production and purification of trichlorosilane and silane; and engineering services for the commissioning, start-up, and optimization of its polysilicon equipment and technology, as well as hydrochlorination technology that eliminates the need for silicon tetrachloride converters in polysilicon production. Further, the company sells replacement parts and consumables used in its DSS furnaces and other PV equipment. GT Advanced Technologies Inc. sells its equipment and services to polysilicon producers, solar wafer manufacturers, and sapphire producers through direct sales force and indirect sales representatives. The company was formerly known as GT Solar International, Inc. and changed its name to GT Advanced Technologies Inc. in August 2011. GT Advanced Technologies Inc. was founded in 1994 and is headquartered in Merrimack, New Hampshire.

Here are some numbers:

12mth trailing P/E: 3.36 (Extremely Cheap)

Forward P/E: 14.30 (Extremely Cheap)

P/S 0.61 (Excellent)

P/C 1.67 ( Excellent)

Quick Ratio 0.99 ( Good )

Current Ratio 1.30 (Very Good)

Debt/Equity 23% (Very Good)

EPS Growth Past 5 Years 77.57% (Excellent)

Sales Growth Past 5 Years 73.89% (Excellent)

Quarterly Sales Growth 30.29% (Excellent)

Quarterly EPS Growth 61.39% (Excellent)

ROA 16.24% (Excellent)

ROE 68.79% (Excellent)

ROI 33.69% (Excellent)

Gross Margin 44.66% (Very Good)

Profit Margin 19.19% (OK)

Short Float: 23.06% (Amazing)

EPS PAST 5 YEARS (37% annually)

2007 0.25

2008 0.61

2009 0.60

2010 1.24

2011 1.45

Although it is expected to slow down in 2013, here is some things I like about the company. It has a lot of cash. It has almost $3 in cash per share, when the stock price is only around the $5 mark! Its earnings have been increasing steadily and an upcoming dividend wouldn't be surprising. Additionally, it has a 23% short float. I believe that any good news could spark a short-covering rally, expecially because it is a small $584.60M company.

Market Cap: 584.60M

Sales: 955.71M

Income: 183.4M

Cash Per Share: $2.97

Book Value: $2.80

Recc Price:$4.94

I find these rock-solid stocks a great bargain for any investor. In uncertain times like these, these are the kind of stocks that are worth buying.

Disclosure: I am long EZPW, RGR, GMAN, RUE.

Stocks: EZPW, RGR, GMAN, RUE, GTAT

By; Ong Kang Wei