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) -- Uncertainty is everywhere. If you recognize this, you can make it work in your favor by buying companies that are priced to shrink but are set to grow. Leave it to others to make uncertainty work against them. They can buy stocks where growth expectations are already priced in and a failure to meet expectations can cause the stocks to crash.

If you've been reading my articles regularly -- in addition to seeing returns of more than 100% far this year -- you know that I've been preparing for the wave of uplistings of unloved Chinese stocks for quite some time. Well, it's time to ring the bell, because we are in the middle of the madness.

While much attention is being paid to mergers and acquisitions and huge IPOs, I'm glad to focus on these stocks that are set for uplisting. They offer opportunities that are simply to great to pass up. For example,

Oriental Paper


is conducting a 1-for-4 reverse split. This is great news, because this company is priced in for shrinking but it's set to grow. I pointed out this stock when it was trading at 22 cents. After the reverse split, it will likely fetch $10-plus, and I think it could even go to $20 or more. My target exchange for uplisting: Amex.

Elsewhere, take a look at


. This company is undergoing a ton of changes, including a 1-for-100 reverse stock split, a spinoff of noncore assets, an acquisition, a name change -- to


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-- and an increase in authorized shares. These are ways to turn a penny stock into a $10-plus stock. I suspect that this one will be looking to uplist by the end of the year, and my target is


. The fear here is the dilution of common equity, and this fear is justified. But I think it is offset by explosive growth potential on the cheap. Pay a little, get a lot. On Monday the stock saw its highest volume in two years. This name won't be undiscovered for much longer.

Longwei Petroleum


is a stock trading around $1.40 with forecast 2011 earnings per share of 80 cents and a trailing 12-month EPS of 30 cents. I would argue that this is a no-brainer. I've told you about it before. James Altucher reportedly likes this one too. This company was among the 35 that made presentations at RedChip's New York Equities Conference on Oct. 1. Speaking of that conference, it offered a perfect example of what I consider to be an ignorant investor. Somebody asked, "Why are you guys growing at 30%-plus and carrying a forward P/E of around 2?" I wanted to interrupt, but I let the presenter field the question. My response would have suggested that the abundance of uninformed people like the one who asked the question offers the opportunity of a lifetime for savvier investors. It will be interesting to see if Longwei is able to uplist in the next year without having to reverse split. Hey -- it could happen. My uplisting target is Amex. I've informed my Financial Statement Analysis class that I believe this stock will see $3 by Halloween. That's a 100% return in a month.

Prim's Algorithm

People keep asking me, "How do you find these stocks?"

My stock-picking strategy is not unlike Prim's Algorithm, which I traversed in my Ph.D. Combinatorial Optimization class. In a sentence, I quickly branch out from what I know to expose myself to more of what I know that I don't know, spending as little time as possible on each activity that doesn't add value. I quickly eliminate opportunities that don't appear to be the best using basic valuation metrics. I'm one of the few people that actually believes in my ideas as opposed to just writing about ideas, because I own them all myself. After sorting through thousands of companies I stick by one guiding principle: When you can be certain that others are uncertain and that the price that you pay is less than the underlying value, buy. Thus, I own when it doesn't make sense not to.

-- Written by Glen Bradford in West Lafayette, Ind


Disclosure: Bradford was long Oriental Paper, MystarU, and Longwei at the time of publication.

At the time of publication, Bradford was long Oriental Paper, MystarU and Longwei.

Glen Bradford is the CEO of ARM Holdings LLC, a hedge fund advisory company. He's pursuing an MBA at Purdue University and is trading his entire tuition in the stock market as well as the tuition of his roomate. His goal is to buy the most undervalued companies that are making money and set to make more money that he can find. In March 2009, he was quoted saying, "Uncertainty will certainly work for me."