The catalyst here is that YUM reports earnings today. Yum! has a diverse product base with incredible customer loyalty (loyalty or addiction?) to their products. With 60% of the American population severely overweight, YUM is the only pure play on an obese society. With approximately 34,000 restaurants in 100 countries and $9.7 billion in annual revenue, YUM offers a lucrative business with both increasing margin expansion and sales. With a P/E of 22 and quarterly earnings growth (year over year) of 14.1%, I consider YUM relatively cheap compared to its potential for international growth. There are some problems with its balance sheet and gross margins can certainly be worked on (consider the quality of the food).

First up this week is Manitowoc (MTW), a maker of international cranes and other basic construction vehicles worldwide. I have highlighted Manitowoc before, and with good cause. Recently, shares of Manitowoc have moved from a Dec. 24th high of $52 a share to $38 a share, shares of Manitowoc are now at a level to handily beat earnings estimates later this week. Shares have been on a horrible side, in part because of an inaccurate assumption that global growth was slowing. Manitowoc recently raised its 2008 guidance, saying that sales at its crane division should grow by more than 20% next year -- and that is after seeing 100% year-over-year growth in its backlog. Last week internationally based stocks suggested that international growth is still strong. Weekly Catalyst: After receiving a downgrade from Lehman shares of this construction company is poised to beat earnings

Has a P/E of 15, a PEG of 1.7 and a yield of 1.3%. Company procures, transports, stores, processes, and merchandises agricultural commodities and products primarily in the United States. With AG booming this is a great play ahead of the quater. Also a play of the Monsanto quater

The catalyst here is that YUM reports earnings today. Yum! has a diverse product base with incredible customer loyalty (loyalty or addiction?) to their products. With 60% of the American population severely overweight, YUM is the only pure play on an obese society. With approximately 34,000 restaurants in 100 countries and $9.7 billion in annual revenue, YUM offers a lucrative business with both increasing margin expansion and sales. With a P/E of 22 and quarterly earnings growth (year over year) of 14.1%, I consider YUM relatively cheap compared to its potential for international growth. There are some problems with its balance sheet and gross margins can certainly be worked on (consider the quality of the food).

Also worth looking at is Plains Exploration & Production Company (PXP). With oil still over $90 a barrel and natural gas prices ticking up Plains Exploration should rally. Another thing is that the market has hardly focused on Plains sale of some of its oil and natural gas fields last month to XTO. Buying low and selling high company assets is certainly one way to create shareholder value. While, the sale to XTO and Occidental was cheap (Occidental paid roughly $20 a barrel as part of the deal). With the sale the company announced a $1BB buyback, which will take off 1/3 of the market cap in the coming year. EPS could come in 20-30% higher in 08’ as the buyback shrinks the float and commodity prices stay high.

Has a P/E of 15, a PEG of 1.7 and a yield of 1.3%. Company procures, transports, stores, processes, and merchandises agricultural commodities and products primarily in the United States. With AG booming this is a great play ahead of the quater. Also a play of the Monsanto quater

They are a reinsurer for financial services firms. Everyone thinks these firms are toast because they are reinsuring all the subprime stuff from the lending companies. But this one is different. They are triple A and are only reinsuring the municipal bond CDOs held by the insurance companies. But the stock is down huge. This could be a double or triple. They are getting more business than ever because everyone's got to dump their quality stuff on them in order to pay for the junk

Also worth looking at is Plains Exploration & Production Company (PXP). With oil still over $90 a barrel and natural gas prices ticking up Plains Exploration should rally. Another thing is that the market has hardly focused on Plains sale of some of its oil and natural gas fields last month to XTO. Buying low and selling high company assets is certainly one way to create shareholder value. While, the sale to XTO and Occidental was cheap (Occidental paid roughly $20 a barrel as part of the deal). With the sale the company announced a $1BB buyback, which will take off 1/3 of the market cap in the coming year. EPS could come in 20-30% higher in 08’ as the buyback shrinks the float and commodity prices stay high.