Electro Scientific Inds (NASDAQ:ESIO)

A general increase in the electronics market is observed over the past years and I believe the trend will continue

Earnings beat a coming

Looking forn a rebound when economy turns around - maybe a merger late this year

Upcoming merger and stock buyback and this company is sitting on over 200mil in cash reserves that they are looking to park somewhere right now. As soon as the market "discovers" ESI it'll jump up 30-50% virtually overnight. Buy and hold and watch for the volume to move--it will.

This stock will suffer along with the rest of the global economy until the credit ship rights itself.

mjpayday

This stock game down hard and stayed down. I'm sticking this one in the bare cave.

Testing out a portfolio of smallish-cap 5-star stocks found using the CAPS screener. All picks have at least 50 allstars backing them, which should be enough to minimize star rating fluctuations. It's only been about a week, and I expect a LOT of volatility, but I have high hopes for market beating performance. Time will tell...

Undervalued

The world's demand for laser technology will continue to grow, in my opinion.

Turnaound play, will trade sideways for 6 months and then bounce.

Electro Scientific Industries was a personal favorite of mine to trade in the early 2000s and once again they look like they'll step up and break out of a long-term trading channel. ESIO has revenues growing back in the 11-19% range and is trading at under 20 times forward earnings with a boatload of available cash, $8 a share to be exact. This is plenty of cash to authorize a buyback or attract a possible buyer. I see business improving modestly in 2008. The long-term technicals show that it wouldnt take much to get an explosive break to the upside.

Nero

Sagetrade

I swiped this company from some smart Fools, but so far it hasn't delivered much- up about 3% so far in 7 months. This company is not one I'm well acquainted with, but here's what I see:

It's a newsletter pick so that right there makes it worth a close look. Profit margins are a healthy 9.4%. Forward p/e is 18 and long-term growth estimate is for 15% per year. That doesn't seem like much of a bargain unless the estimates turn out to be incorrect. One Fool says that the P/E looks better when you back out the cash. They have been strongly cash-flow positive the last 3 years or more. From the 1 year chart, ESIO has been gradually trending upward since it low-point in mid-March. They are covered by just 5 analysts, which is fairly small. The most optimistic analyst price target puts them at $27, which would be a close to a 25% gain from here.

Here is a link to their webpage: http://www.esi.com/esi/

MArket leading products, good balance sheet, improving use of cash (buy backs of stock), strong customer demand, etc. will push this stock towards $30

Good CEO; dominant products in their market niche; market they sell to should grow due to increased DRAM demand

Makes laser equipment for semiconductor and electronics industry. This will be a fast growth segment over the next 12-18 months as the semiconductor and electonics industry heats up. Strong growth, but expect volatility short term. Accumulate on major dips.

They have a ton of cash on the balance sheet. Good things happen to those who buy cheap stocks - on average.

crazykling says it all

buying back tons of stock and undervalued