Last week I wrote an article on Jim Simons. His quantitative-based hedge fund Renaissance Technologies is on fire: Its Medallion Fund is up more than 50% in the first three quarters of 2007, according to a recent Bloomberg report.

Simons' team of mathematicians and statisticians use complex trading algorithms to help the firm pick cheap and undervalued stocks.

This week, Stockpickr has reviewed the stocks held by Renaissance and extracted the ones that meet the following criteria:

    A stock price under $10.

    Zero debt on the balance sheet.

    Insider buying within the past three to four months.

    First up is data storage company

    Iomega

    ( IOM), which is involved in the creation of zip drives, external hard drives and USB flash drives. Currently, Iomega sports $70 million in cash and zero debt on its balance sheet. It also has seen 50% year-over-year earnings growth. Insiders have bought about $250,000 worth of shares since August. This is an enormous amount of stock considering Iomega's market cap.

    Renaissance currently owns about 5 million shares of Iomega.

    Also worth looking at is

    Sturm, Ruger & Co.

    (RGR) - Get Report

    , which is involved in the sale of firearms and precision investment casting within the U.S. Sturm Ruger has $65 million in cash and zero debt. Insiders have bought back roughly $300,000 worth of stock since the beginning of November. Sturm Ruger also has a short position of 20%.

    Renaissance currently owns about 1.3 million shares of Sturm, Ruger & Co.

    Another Renaissance stock that fits our screen is

    Security Capital Assurance

    (SCA) - Get Report

    , which has been hit hard during the recent subprime crisis. SCA acts as a financial guaranty insurance and reinsurance company. It currently has $250 million in cash and shows heavy insider buying in our screen.

    Insiders have bought back roughly $2.1 million worth of stock since the summer, action that may show insiders' overall belief in their insured bonds and business. SCA also has a short position of 20%.

    Also worth looking at is

    Intervoice

    (INTV)

    , which provides converged voice and data solutions for networks worldwide. INTV currently has $30 million cash and zero debt on its balance sheet. Since August it has seen roughly $300,000 worth of insider buying.

    Another stock that was flagged by our screens is

    New Frontier Media

    ( NOOF), which has $20 million in cash and zero debt and has seen $250,000 worth of insider buying recently.

    To see more of Renaissance's stocks that fit this criteria, including

    Johnson & Johnson

    (JNJ) - Get Report

    and

    Colgate

    (CL) - Get Report

    , check out the

    Renaissance Technologies

    portfolio at Stockpickr.com.

    Interested in other stocks that trade under $10? Check out TheStreet.com Stocks Under $10 service for a free trial.

    At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

    James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for

    The Financial Times

    and the author of

    Trade Like a Hedge Fund

    ,

    Trade Like Warren Buffett

    and

    SuperCa$h

    . Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

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