Stockpickr: Top Stock Takeover Targets

But Pioneer's business isn't really that important to us. In fact, it doesn't matter if its business gets cut in half, because right now it has an earnings yield of almost 33%. In other words, if its revenue and earnings remain the same, then for every $1 you spend to buy shares of this company, you get a return of 33 cents. This is a ludicrous amount and cannot be sustained.

One of two things is likely here: The company's business will decline, or the company will get acquired. Let's say you have $522 million to spend. You can either get 6% return in Treasury bills, or you can make 33% a year by buying Pioneer. OK, so that 33% is going to go down, but it doesn't matter -- you can get 10% on your money and you're still doing fine, particularly given the company's strong competitive position and clean balance sheet.

Surprisingly, Pioneer is a holding of the Bjurman Micro-Cap Growth Fund, run by Thomas Barry. I say "surprising" because the company doesn't seem like a growth pick. Other stocks held by Bjurman include Dynamic Materials(BOOM Quote) and Palomar Medical Technologies(PMTI Quote).

Stockpickr tip of the day: Here's a question for the ages: Who owns the Fed? Once I started reading the posts in this Stockpickr forum, I realized I didn't know the answer. If you can help figure it out, please post your response to the forum.