For those of you who aren't familiar with me, a lot of what I've done recently is in the space of Chinese micro-caps. But with that being said, I specialize in finding the most undervalued companies in the world. I've got two companies of the American variety that could be in your backyard. In my opinion, I'm looking at companies priced to shrink that are boiling over with uncontainable growth.
is one of the largest providers of processing services for the mortgage and real estate industries in the United States. Who cares? Well, you should if you're an investor. In my opinion, there is a lot of money to be made. The company is looking to add additional clients and has carried several of its clients for more than 15 years. It's incredibly scalable; its margins are big.
Foreclosures are going to go through the roof because as we all know in the last decade many mortgages were financed to those who were unable to pay them. It is expected that there will be default rates of around 50% in some mortgage classes. If you really love the story, you can go straight for the warrants and buy DJSPW. Be careful, these expire Aug. 11, 2012, and convert at $5. I wouldn't recommend these for novice investors. The greatest news is that they are currently priced to shrink! I'll be laughing all the way to the bank on this one. Clock it -- I'm calling 100% return and more in the next year.
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.
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.
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
. 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.
Glen Bradford is the CEO of ARM Holdings LLC. He's pursuing an MBA at Purdue University and gained recognition by trading his entire tuition in the stock market as well as that of his roommate. He intends to not lose money for his clients by buying the most undervalued companies that are making money and set to make more money that he can find. In March 2009, he was quoted for saying, "Uncertainty will certainly work for me."