Bell Microproducts, Inc. (BELM)

Ok, here's one of those totally off the wall value picks with plenty of inherent risk. Currently Bell Microproducts is being hammered due to the fact that they have not been filing their quarterly reports in the timely fashion that is required by publically traded companies. Luckily for BELM, their creditors have been willing to forgoe the maintainence of a yearly audit for now which is good news. What's even better news is the balance sheet of this storage and semiconductor company. Sure they're small, but you'd never guess that they've taken revenues from 2.2B in 2004 to over 3.4B this year and 4.0B expected in 2009. Thats nearly a double in 5 years! They have also produced a profit in the past two years and should produce somewhere in the realm of 36-40 cents in EPS this year. That places BELM at roughly 9-10 times 2008 earnings and about 5.5 times 200 earnings. Did I mention BELM is trading at 0.49 times book value? Technically this just about cannot get any more oversold based on stochastic indicators. There's so much here that points to a marked overreaction to the downside. As long as BELM remains profitable, investors will be kicking themselves for not jumping in here.

Nero

Sagetrade

p/e is 400