Issue: 4/10/2008

Stocks Under $10

UFPT @ $9.50 (U F P Tech) manufactures engineered component products using laminating and fabricating technologies for industrial and consumer markets. Earnings are expected to grow 25% this year to 0.89 cents a share. Volume has steadily increased in this stock over the last couple of weeks. We will establish half a position here and enter the remaining half on a pull back to $8. Our stop loss will be set at $7, so adjust the size of your trade accordingly. 

QSC @ $4.66 (Questcor Pharmaceutical) develops prescription drugs for the treatment of diseases and disorders of the central nervous system. Revenues have accelerated 24%, 266% and 697% during the last three quarters and earnings also grew by triple digits during the same time frame. Institutional sponsorship has increased from 4 to 10 mutual funds owning the stock over the last year. We are establishing a position here and will set our stop loss at a move below recent low's of $3.65. We would prefer to own this closer to the $4 level. If you'd like, you could establish half a position here and enter the remaining half on a pull back to $4, but it may never come. We feel this stock could double over the next year, if not sooner.




 

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Posted 04-10-2008 8:03 PM by Dave Dispennette