Thursday, April 8, 2010

The Guru's: Undervalued Stocks - SPMI, TNXI, ADVC

SPMI the company is expanding, reducing expenses, and profitable. At less then $.06 a share this stock epitomizes the term "undervalued stocks". I think this stock could see $.15 - $.30 a share at some point this year.

TNXI earned $.04 in its last quarter and closed today at $.099. That is a 2.5 PE for the quarter, not the year. Extrapolate that $.04 number over the course of the year and you get a stock that earns $.16 a share and trades at $.099? Have you ever heard of a stock that trades BELOW its annual EPS? This stock screams bargain. After the initial pop on earnings day I think the market makers are ready to bring this stock higher. It is a Guru Buy and Hold. Those buying at these prices will be rewarded handsomely in the months and years to come.

ADVC the Guru's very first buy and hold stock remains thinly traded even though it has been growing at a stready clip. Factor in that growth with the quarterly dividend payments, and you have a stock that is trading well below its fair value. I suspect that abnormality won't remain much longer.

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