Stock Under $10 with 50-100% upside potential - 14 Days FREE!

5 Stocks and 5 Reasons to Buy Them

Stock quotes in this article: CCME, CNAM, CCLTF, LTUS, ENHD 

Here are five stocks, and five reasons to buy them. But really, you only need to know one thing: The valuations are absurd.

But if you still want more justification as to why you should buy, I've listed a few reasons that you can use to support your own investment hypothesis. Pick your poison. That said, I'm fighting an internal battle; I don't want to be too descriptive because I don't want more people out there driving up the prices I have to pay to buy.

Short Squeeze?

How about 45% of the float being short, 11 days on the Regulation SHO list, breaking out of what was a six-month downtrend, increasing strength in business fundamentals, and a buyback equivalent to 30% or more of the float at current prices? Well, if you find yourself picking up the phone for your broker tell him you want to buy China MediaExpress (CCME). Merry Christmas. You might want to compare China Media to Focus Media Holding (FMCN), which is way more expensive.

Aggressive Buyer?

What are your thoughts on taking a low-risk ride on the gravy train thanks to investor Andrew Worden? He's aggressively been snatching up incredibly inexpensive shares of China Armco Metals (CNAM). He's bought so much that he's become an insider. Ride his coattails, I am.

Warrants? China Ceramics (CCLTF.OB) is cheap enough as it is, but I'm playing the warrants. The ticker for the warrants is CCLWF.OB, I think you should buy them too. If you don't the next guy will.

Facility Expansion? Lotus Pharmaceuticals (LTUS.OB) probably won't finish construction on its new facility this year, but likely will early to middle of next year. My thoughts? Who cares? It's cheap enough without the expansion to warrant owning a large chunk in my portfolio.

Cheapest? Energroup Holdings (ENHD.OB) is single handedly the cheapest company out there. It made 62 cents a share in the first half of the year putting my normalized EPS estimate at least at $1.30 for a $1.70 stock that's growing with more than $200 million in revenue and more than $25 million in net income. Note that $17 million worth of the shares traded at $4.40. You're roughly able to get 60% off. Sold!

Like I always say, either buy right alongside me or watch my stocks go up. Booyah.

Bradford and his investors were long China Media Express, China Armco, China Ceramics, Lotus Pharmaceuticals and Energroup Holdings at the time of publication.

This commentary comes from an independent investor or market observer as part of TheStreet?s guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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