Xinyuan Real Estate (XIN) is hugely undervalued and got the big push. This is what a speculator waits for -- a stock with huge growth potential, valued at pennies on the dollar. I'm not one of those guys. I focus mostly on the company's longer-term aspects. But I double up my holdings on companies that I expect to bust loose in the short term, too. Xinyuan is trading at $6, and I see no reason why it isn't worth at least double that. It's investing in China's booming tier-two communities and avoiding the already hyped tier ones. Not to mention that the truly amazing Chinese Olympic coverage is the frothy water on the top of this tsunami. Xinyuan Real Estate Co., Ltd. (XIN) is the most undervalued growth company I have ever seen. Trading at $5 is totally unreasonable. They just IPOed and had to pay off their preferred shareholders and incurred a onetime net loss. Otherwise, they are growing somewhere around 78%-400% a year depending on whose opinion you’re reading. Not only that, but over 60% of the company is owned by its employees. They are also only doing real estate in Tier II communities, which have yet to be inflated in value, unlike the Tier I.

Sigma Designs' (SIGM) stock took the dive recently, but now it's bubbling back. It's all good now -- concrete fundamentals and low debt. I can't resist buying more of this company. Sigma has good management and is always up for leveraging when it has the opportunity to have an outstanding quarter. Wall Street overreacted to its lower earnings a few quarters ago. That's been good news for me. I pretty much bought it for nothing. Sigma had announced ahead of time that its earnings would blip lower. So why did the price go down? Wall Street acted like it was blind-sided and went into a selling frenzy. The selling's over. Buy. Sigma Designs, Inc. (SIGM) is your basic case of a company having strong fundamentals and growing so fast that it had to readjust its most recent forecast for less growth due to product changes. After the revision, they then upped their forecast and are back on track. Fortunately, the stock plummeted and offers a great opportunity to buy in until their price readjusts.

VSE (VSEC) is growing at a brisk pace but took a dive earlier this year because of free-cash-flow issues. This is a mostly government funded company. The U.S. government makes good on what it owes, so the free-cash-flow issues aren't a big deal. Trading volumes were up, and the stock has risen about 50%. That's a sign that a mutual fund or a few large players are out there buying it up, hand over fist. Odds are, these wealthy people who are doubling the trading volume did their research too and found out that this company was a steal. Insiders own just as much of the company as do institutions. In fact, insider buying is on fire. Today, the stock is down 6%. Time to buy. VSE Corp. (VSEC) was an entirely undiscovered company up until about 2 weeks ago. Then trading volumes doubled for around 10 straight days and have finally settled off. This leads me to believe that there is a fund out there that believes it’s a huge bargain. The reason the company is at a discount is due to free cash flow issues on their financial statements, but when it’s the US Government footing the bills… I feel like this metric is 100% useless.

Hurco Companies, Inc. (HURC) is one of those companies that really has no reason to be priced as cheaply as it is. It’s hugely predictable and it’s enormously profitable and growing fast.

Ebix, Inc. (EBIX) is insurance for your portfolio. They currently develop software for the insurance industry and are expanding to the medical industry.

Middleby Corp. (MIDD) supports all your favorite meals by supplying the equipment used to prepare them. It could also support your portfolio if you’re looking for a home run. If you’re looking for base hits, you might have realized that you’re reading the wrong article.

LSB Industries Inc. (LXU) is a top notch climate control and chemical products company. I’m going to go ahead and assume that it’s in the bargain bin cause of the mortgage crisis that is sweeping America. Just cause they’re not building homes doesn’t mean that the air conditioning doesn’t need replacement. It’s feeling hot. So is this opportunity.

American Oriental Bioengineering, Inc. (AOB) greatly enhances your position in China and pharmaceuticals. It already has a huge client base and is growing rapidly. Their stock continues to suffer. Fortunately, in the long run the stock price is guided mostly by its earnings per share and not irrational speculative fears and concerns.