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EnigmaDude (54.02)

Some hidden gems I'm watching



December 04, 2013 – Comments (2) | RELATED TICKERS: OME , MEI , CECE

It's been interesting to read all the different schools of thought regarding where the market is headed, and if we are due for a crash, etc.  I have been busy this year focusing on my real job and just doing a little bit of trading here and there.  There seems to be fewer blogs of interest to me on CAPS lately so I thought I would try to contribute one that might be of interest to others.  Plus I want to capture my thoughts on a few stocks that I have recently come across that seem to have some good potential for future gains.

Methode Electronics (MEI) is one that looks very interesting, especially with Ford and GM (their biggest customers in auto) showing some very strong sales.  But MEI is involved in much more than just the automotive industry.  Their primary end markets include the automobile, computer, information processing and networking equipment, voice and data communication systems, consumer electronics, appliances, aerospace vehicles and industrial equipment industries.  Whew!  They have been growing revenues, making strategic partnerships, and improving the bottom line for the past several quarters.  They report earnings tomorrow.

Omega Protein (OME) is another interesting company that caught my eye recently.  The company was founded 100 years ago and specializes in fish oil.  The stock is trading for a very low price (based on P/E, P/S, and other metrics) and has experienced substantial earnings growth, which did propel the price upward this year leading to a downgrade by one analyst.  They have very little debt and seem to be on a good track for continued growth.  I have not done a lot of detailed research but it looks like one to watch for sure.

The third stock I am watching closely and even purchased an initial position in my IRA is Ceco Environmental (CECE).  Ceco recently merged with MetPro which caused the latest earnings report to be slightly below expectations as they accounted for costs associated with the merger.  But the synergies and expanded market they will realize from the merger should serve them well into the future.  Ceco is now well positioned to take advantage of growing needs for environmental controls in China as well as the US market and other parts of the globe.  There is an excellent blog on SA written by another Fool that goes into much greater detail than I care to here.

I am interested to here other's comments on these picks.  Do your own research before you invest.  Thanks for reading!


2 Comments – Post Your Own

#1) On December 05, 2013 at 2:54 PM, EnigmaDude (54.02) wrote:

Well it looks like I was right about MEI anyway.  Up over 40% today after a solid earnings report!

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#2) On March 13, 2014 at 10:50 AM, EnigmaDude (54.02) wrote:

Bought some shares of MEI for my IRA today after a slight earnings miss. Stock is down 15%.

Also OME had another strong quarter but I want to watch it a bit longer before I invest real $$.

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