Ternium S.A. (TX): TX has lagged the overall Steel and Coal sector based on fears that Chavez is going to "take-over" the company. Prices for TX's Iron Ore Pellets are going projected to be up 87% from 2007-2008 ($79 per ton to $147 per ton), prices for Coal up 208% from 2007-2008 ($97 per ton to $300 per ton). 35% off its 52-week high, despite great earnings from U.S Steel (X) and a merger in the coal sector Ternium (TX) is likely to report better than expected earnings and surprise the street.

Next up is Heelys (HLYS), which is one hated stock. Heelys reports earnings next week, and is likely to beat analyst’s depressed estimates. The stock is dirt cheap, with $100 million cash, zero debt and EV/EBITA of 1.343. The company is expanding internationally and introducing a new line of shoes without wheels to cater to the skateboard set. And with the summer in full swing, it’s a great time to roll around outdoors in a part. Heck, even if we are in a recession, parents would rather buy their kids a $30 pair of Heelys to keep them business, than the new I-phone from Apple (AAPL)

Worth looking at, are shares of Exide (XIDE), the world’s largest independent producer of lead-acid batteries. Exide, which mainly produces batteries used in transportation, motive power, network power and military applications, is finally seeing positive momentum based on a major turnaround that management has undertaken. Lead prices are one of the few commodities that has actually tanked since the start of 2008, which could be huge for the company. Down some 40% for the year, lead is the primary input into batteries. Lower input costs should equate to higher earnings for Exide. Since the company does carry some inventory quarter over quarter, this quarter should be the first where Exide’s margins and profitability are bolstered substantially

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