AU Optronics Corp. (ADR) (AUO)

With a forward looking PE this stock is fabulously cheap relatively to its growth prospects in the strong growth industry of LCD screens. It is unloved and undiscovered by the street which has focused on the aspects of its commodity pricing rather than rewarding the growth of the industry as a whole. As the industry matures, more money will enter profits and cash flow rather than trickling to capex to expand production and build factories.

$1.12 in earnings is substantially higher than the street consensus earnings of .48 cents but First Call was basing their numbers on a mere two analysts projections.

LCD screens are here to stay and with phones, computer monitors, HD Tvs, GPS units, pocket stereo units, handheld video games and many more uses this is an industry thats just begun to tap its potential.

As the industry undergoes a transition from race to meet demand to that of earning money on sales, Investors should be richly rewarded.

AUO is probably the best managed player in the field right now based on their ability to establish customer loyalty, produce a great product, and manage costs.

AUO is a true technology stock in the midst of a growth phase that should last for years with a 2008 PE under 5. And thats as cheap as you will ever see a company thats posting up solid 20% growth Q after Q. IMO, AUO is a strong buy.