Who is Mohnish Pabrai, what stocks does he own and, more importantly, why should you care?

The Mohnish Pabrai portfolio is the 10th most-viewed portfolio at Stockpickr.com and the fifth most viewed portfolio of individual traders after Warren Buffett, George Soros, Carl Icahn and T. Boone Pickens.

Pabrai manages the $300 million Pabrai Fund using a deep value approach. His fund has generated an average annual return of roughly 25% since its inception in 1999. Stockpickr has sorted through Pabrai's holdings and compiled a list of Pabrai's Top Stocks ranked by their price/earnings-to-growth (PEG) ratios. Generally speaking, the lower the PEG ratio, the more undervalued the stock.

At the top of the list is CompuCredit ( CCRT), with a very low PEG of 0.4. This credit and financial services company just reported that it expects earnings of 80 cents to 90 cents a share for the latest quarter. However, $1.30 a share was estimated by analysts. The stock has a P/E ratio of 23.

CompuCredit shares also are owned by Second Curve Capital, an $800 million hedge fund that specializes in financial services stocks. The fund, which is run by Tom Brown, has generated an average annual return of 20% after fees. Second Curve also owns Capital One Financial ( COF), which has a PEG of 1.2, First Marblehead ( FMD), which has a PEG of 0.2, and RenaissanceRe ( RNR), with a PEG of 0.5.

Pinnacle Airlines ( PNCL) is another Pabrai stock with a low PEG, at 0.4. The company just reported that available seat miles for the latest quarter increased by 7%, and revenue passenger miles increased by 11%. The stock has a P/E of 4.9.

Pinnacle shows up in the Top 10 Airline Short Squeezes, a Stockpickr portfolio that lists the airline stocks with the highest short, or days-to-cover, ratios. Other airline stocks that show up on the list are Republic Airways Holdings ( RJET), with a PEG of 0.7, JetBlue Airways ( JBLU), with a PEG of 2.5, and Northwest Airlines ( NWA), with a PEG of 0.7.

Ternium ( TX), a Luxembourg-based company that makes and markets flat and long steel products, is another stock owned by Pabrai, with a low PEG of 0.8. Last month, Deutsche Securities upgraded the company from hold to buy. The stock has a P/E of 8.

Greenlight Capital, managed by David Einhorn, also owns Ternium stock. Greenlight is a hedge fund that specializes in spinoffs and has generated an average annual return of 27% for the last 10 years. The fund also owns Ameriprise Financial ( AMP), with a PEG of 1.3, and KBR ( KBR), with a PEG of 2.7.

Check out these Top Pabrai Stocks Ranked by PEG as well as all of Pabrai's stockholdings at Stockpickr.com.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Pinnacle Airlines to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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; click here to send him an email.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.