investingfromtheright

I am retired and take educated guesses on all things financial.

June 04, 2009

June 4, 2009: Low PE Stocks With High Earnings Growth Rates

I am being very selective about purchasing common stock. In fact, my Speculative and to a lesser extent my Permanent Portfolio(s) consist of a higher percentage of bonds, preferred stocks and commodities,almost all via ETFs. Rental real estate has been advanced to a higher amount than ever in my holistic portfolio, as well as tax strategies to keep what I earn. Not one who is prone to panic with each day's news, I try to be well read from a variety of viewpoints, especially the Financial Times and Wall Street Journal, a few blogs and Bloomberg, for starters. I also subscribe to a few eclectic financial and economic publications that I may discuss in a future post.

I am concerned about inflation, creeping socialism, the geo-political status of world hot spots and the victim mentality that appears to be resonating from a form of class warfare not seen in the United States since the 1870s. That said, there is always a bull market somewhere and I have been toying with various stock screens to find gems for possible inclusion to my holdings.

The following stocks have current (and projected) earnings growth of at least 25% and a relatively low PE and PEG ratio. Perhaps you may wish to research them further to see if they are your cup of tea:

AGO Assured Guarantee (Insurance, Re-Insurance) trading recently at $14.00 with an EPS of 128%.

CAST Chinacast Education Corporation (Schools) trading recently at $5.50 with an EPS of 80%.

DENN Denny's (Restaurants) trading recently at $2.50 with an EPS of 67%.

MPAA Motorcar Parts of America (Auto and TRuck Parts) trading recently at $4.50 with an EPS of 59%.

LRN K12 (Schools) trading recently at $16.70 with an EPS of 58%.

HGRD Health Grades (Business Services) trading recently at $3.70 with an EPS of 47%.

CRTP China Ritar Power (Electric Inst. and Controls) trading recently at $2.00 with an EPS of 45%.

DCP DynCorp (Transportation) trading recently at $14.75 with an EPS of 42%.

EGMI Electronic Game Card (Casinos and Gaming) trading recently at $0.90 with an EPS of 40%.

CGA China Green Agriculture (Chemical Manufacturing) trading recently at $7.50 with an EPS of 36%.

HXM Homex Development (Real Estate Operations) trading recently trading at $26.70with an EPS of 27%.

Granted, all of these stocks are growing earnings after some weak fiscal 2008 results. Comps are interesting all over the investment spectrum in this market cycle. But they appear on the right track this year and beyond,and perhaps worth a look as a speculation within your portfolio.

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