Date updated:01-27-2008
The goal of this portfolio is not necessarily to find the best stocks for the next century but the ones that can either snapback this week because of an irrational selloff last week, or they have some other potential catalyst that can create explosive potential during the coming week

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CX
Cemex Sab De Cv A - $6.77
- -11.27%
- $7.05
CX is very interesting company with exposure to international growth and expansion, mostly in Third World countries. Cemex has very clean balance sheet with about $18 billion in annual revenue and $6 billion in gross profit. Although Cemex does have around $6 billion in debt, it seems as though it's "working debt" that has been re-invested back into the company through company expansion, development of new warehouses, etc. Cemex is one of the most oversold and undervalued international companies out there, partly because it is mislabeled as a company that is tied to housing and housing construction. While this is partly true, it is tied to international housing and construction, which is booming. It is a great indirect investment into the rapid expansion of such developing countries

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MCD
Mcdonalds Cp - $54.18
- -1.72%
- $55.16
Off $10 from its high McDonald's is a great earnings play. Like YUM! McDonalds is an international company based in the US; with more than 70% of the company's revenues coming from overseas it is levered on strong international growth. McDonald's is also a weak dollar play as a positive currency conversation rate will help the bottom line

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VZ
Verizon Commun - $25.75
- -8.07%
- $27.35
First off, Verizon has a yield of 4.5%-- That's 1.5% better then T-notes, if your looking for a super solid name then Verizon is a great long-term play. But with earnings ahead this week, I think we can play this ahead of the quarter as an earnings play. Verizon is still business from T and this should help this quarters EPS.

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EMC
E M C Cp - $9.98
- +2.99%
- $10.17
Like IBM EMC has a lot of international growth and revenue. Basically, EMC is a play off VMW—Let's run over the numbers real quick: EMC is once again trading at cheap levels. Here are a few quick calculations to show how cheap this stock really is. EMC owns 86% of VMware, VMware is currently trading at $80 a share with a market cap of $30.90BB $38.29BB (EMC's Market Cap) - $30.90BB (VMware's Total Market Cap)= $7.39BB (EMC's Market Cap once you back out VMW) EMC total shares outstanding are 2,098,225,000; we can take the Market Cap/ Total Shares outstanding to equal EMC's "real" price without VMW: 7,390,000,000/ 2,098,225,000= $3.52 Mega hedge fund Lone Pine is the 8th largest investor of EMC; with 47,099,337 shares Total Value $852,498,000 Change in Shares +47,099,337 EMC represents almost 10% of their entire portfolio. With a bunch of analysts sporting a $30 price target for EMC, I am looking for a few additional upgrades in the near-term as the catalysts. This is one of the cheapest stocks around.

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YRCW
Yrc Worldwide - $3.77
- -0.79%
- $3.80
TSCO which is set to report earnings on Wednesday of this week. TSCO operates as a retail farm and ranch store in the mid-west selling necessary items for animal products and tool and hardware products. Tractor is also a play on the cold weather that has finally hit the country. Last year CEO Jim Write said "We generated stronger than expected sales during the first quarter. Our team executed well at the store level and took advantage of the cold weather opportunity" With the massive amounts of snow hitting the mid-west and the north east in a deep freeze, look for Tractor to beat earnings. Tractor also has a forward PE of 12.8 with quartile revenue growth of 12.5% and a short position of 10% Another name worth looking at is YRC Worldwide (YRCW) which reports earnings on Monday. YRC Worldwide is a service trucker which has gotten killed this year. Down 60%+ off its high for the year on rising oil and a slowing economy it now offers a good trade into earnings. Last week CEO Bill Zollars gave some bullish comments along with a sector upgrade from Stifel Nicolaus analyst John Larkin. Larkin said "Some tuckers will likely benefit from international growth of container trade in the next one or two years". Larkin also said that a slowdown in the US economy is not expected to affect growth. Money inflows are now showing that investors are dipping their toes into the trucking space and I think YRC Worldwide could benefit. YRC Worldwide also has a short position of 20% and could rally on any good news

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BNI
Burlingtn N Sante - $80.86
- -3.94%
- $83.60
A play off the GREAT CSX earnings (which I nailed last week!), Buffet is in Burlington Northern as well. Down $14 from its high am looking for a beat on EPS.

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OXPS
Optionsxpress Hol - $14.61
- +1.32%
- $14.28
Like Interactive Brokers, optionsXpress should see monster earnings as increased trading volumes and volatility earned extra fees above analyst's estimates.

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ZMH
Zimmer Holdings I - $51.66
- -5.88%
- $53.30
Earnings this week, play on the baby boomers!
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