Readers Pick Seven That Could Double

There weren't many suggestions for down-and-out names in the S&P 500, but one proposed by several readers was Symbol Technologies(SBL Quote), the battered leader in electronic-capture devices. At their 2000 peak, Symbol shares traded as high as $45, and early this year they fetched $19. Now going for the low, low price of $8.36, Symbol has sunk to a multiyear-low valuation because of a number of product-planning missteps, executive exits, lawsuits and accounting delays.

Still, this is a company whose products are becoming ubiquitous. Cash flow has been robust, insiders were buying shares at least as recently as mid-May, and value- or vulture-oriented funds such as Columbia Wanger and Tudor Investment have been buyers.

Says reader Robert Ladd: "Unless this company has a closet like Imelda Marcos, all the shoes have fallen -- including the resignation of its recently hired chief executive to go run NCR(NCR Quote). Despite the accounting problems, the Securities and Exchange Commission investigations and the management turnover, Symbol still has a virtually debt-free balance sheet and a resilient business in bar codes and RFID devices. Revenue is running at an annualized rate of $1.8 billion. At normalized level of profitability, earnings per share should be 75 cents to $1. More likely is that the board throws in the towel and explores alternatives. My estimate of private market value is $15 per share."

No Two-Baggers Here

Before going on to more picks, let me explain some of the ideas that I won't go for. Reader Henry Clampitt, along with many others, believes the prospects for OmniVision Technologies(OVTI Quote) -- a leading manufacturer of low-power CMOS sensors for digital cameras and cell phones -- are very bright.

The company has announced a lot of design wins, cash flow appears solid, and shares have certainly traded down from a much higher level. But the market has pushed the stock down, largely because investors believe this is going to be a highly price-sensitive commodity-chip business even for a technology leader.

Industry giant Micron Technology(MU Quote) has moved into these sensors in a big way, because CMOS products -- that's short for complementary metal oxide semiconductor -- are made on lines similar to those that produce its trademark memory chips. Because of its enviable role in the industry, OmniVision may see its shares rebound 50% or more on a buyout, if a larger entity wants fast entree into the segment. But I don't think they're shooting back to the $26 area for a double in the next year.