Stockpickr: Stocks Set for an Upside Surprise

But analysts are still calling for $4.07 per share in earnings in 2007, giving it a P/E ratio of slightly more than 7, which puts it in takeover territory.

I'm not the only person who thinks that. Chapman Capital, one of my favorite activist funds, has been buying the stock. Bob Chapman, whom I've mentioned before, is notorious for the letters he fires off to management. He once told me that the night before he files one of these letters, he always gives the CEO a call and tells him, "Your life is about to change." Yesterday, Chapman fired off a letter to Cypress Semiconductor(CY) demanding that the company put itself up for sale.

Check out Chapman's fully disclosed holdings and updates on his activist positions. Also, to be notified whenever his Stockpickr page is updated, just bookmark it by rating it with four stars. Check out the rest of the stocks on our Most Likely to Surprise list. Additionally, you might want to check out our Stocks Most Likely to Disappoint list.

Stockpickr tip of the day: I read a number of blogs every day in order to complete my daily Blog Watch column. It's hard to keep track of all the best financial blogs, particularly because many bloggers drop off the face of the earth after a few months of blogging. On the Stockpickr blog, I keep track of my 100 favorite financial blogs. I plan on updating that list soon, but if you click on the link above, what you'll see is current. Feel free to email me with any suggestions.

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