This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Stocks With Unbelievable Expansion

Stocks in this article: EAR CCGY.OB

I must be crazy. I buy for only one reason. When asked what that reason is, I say, "Because it doesn't make sense not to." I've got three companies trading at ridiculously low multiples of my calculated future earnings a couple years down the road. These low prices indicate that investors find the opportunity unbelievable.

The investing world must be tone deaf as it is unable to hear the battle cries of HearUSA (EAR). All of my research suggests that there's a storm brewing that is going to take HearUSA to higher highs.

After talking to the company, I'm biased in believing that their estimates are of the "easily beatable" variety. But then again, I also am disregarding analyst reports on the company as they seem rather uninformed and don't include any of the big upside that I'm seeing. There are two speculative catalysts to consider that I will mention briefly.

  • HearUSA's innovative relationship with AARP seems like lighting off fireworks in the dark. The fuse is lit. The question is: How big of an explosion are we going to see?
  • Siemens (SA) recently reported that it is open to a sale of its hearing aid subsidiary, valued at $3.7 billion by Mark Troman of Bank of America, Merrill Lynch. Note that HearUSA's Siemens debt is self-liquidating. Don't you think that whoever is interested in Siemens wants a distribution channel?
  • China Clean Energy (CCGY.OB) just finished the completion of its Jiangyin plant, which can be used to produce biodiesel and specialty chemicals. This should expand capacity at triple-digit percentage rates. It's also my opinion that this company is making money that disappears off the income statement due to warrant liabilities. I can't find any reason not to own, and so I do.

A Chinese pharmaceutical company, Biostar Pharmaceuticals (BSPM.OB), is looking to expand its supply network from 1,320 sales outlets to 10,000 sales outlets in the next two years and has recently received several approvals from the local government to move forward with their business. I'm expecting upside surprise going into the next quarter.

One thing I will point out on these last two is that the ChiNext, China's new Nasdaq-style stock market, just opened up with P/E ratios 50+. In those instances, you are paying for the growth. In the companies I've mentioned, the prices that the companies are trading at suggest that growth would be a surprise. In this way, you can make uncertainty work for you and get growth for free.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs