Something for Nothing: DJSP, Hear USA

The other company that is about to explode I've talked about before. Apparently, nobody believes me because I'm still accumulating cheap shares. Therefore, more for me.

Let's play a game. I'll give you the puzzle pieces and let you figure out what might happen in the near term. Here is what we know. HearUSA(EAR) signed the largest contract in the company's 20-year history with AARP in August with an Oct. 1, 2009, start date in New Jersey and Florida. The plan is to roll out across America. As of Valentine's Day, it is rolling out to Pennsylvania, Massachusetts, Michigan, Missouri, North Carolina, New York, and Ohio.

Siemens(SI) has around $38 million of HearUSA's self-liquidating debt and HearUSA contractually has the upper hand in the event of a buyout of Siemens' hearing-aid division. Siemens owns 16% of the equity in HearUSA. Siemens has announced its intention to sell the hearing aid division. Private-equity funds, as well as strategic manufacturers, are submitting bids.

HearUSA is contractually the largest distributor of hearing aids for Siemens in the U.S. Siemens is the No. 3 hearing-aid manufacturer in the world behind William Demant and Senovo. Siemens is the only manufacturer in the top three that doesn't own distribution. The U.S. market has the greatest growth opportunity throughout the world.

All things said, HearUSA and DJSP Enterprises have unpriced potential in their companies. In my opinion, they are set to appreciate and "surprise" the investing community. Hold onto your seatbelts. I own them both. You should too, especially at these prices because you're getting something for nothing.

At the time of publication, Bradford was long DJSP and HearUSA.

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