Here is what I see: STEC which has exclusive rights to produce SSDrives for Apple (AAPL), EMC (EMC) and VMWare (VMW) is basically flat on a year-over-year basis, but is down over 70% from its June high of $14 per share. On October 6th management raised guidance for the 3rd time in a row saying that they see 3Q results at ‘high end’ of their already raised guidance. STEC also said that they saw strong performance in its business storage and ultra-mobile personal computing markets. On October 27th STEC won the prestige’s ROBOBAK labs award, which basically showed that STEC has superior SSD technology, thus ensuring reliable and rapid response for companies needing to backup and restore corporate-critical data to servers, desktop and laptop computers. STEC’s management further stated that "ROBOBAK's certification of our solid state drives makes it possible for companies of all sizes to use STEC products with the full confidence of maximum dependability and minimum hassle Selling at 8x forward earnings, $65 million in cash, zero debt, revenue’s north of $200 million dollars already, and the top-tier leader in SSD technology makes STEC a great risk/reward play ahead of the quarter. STEC also has a mammoth short position of 35% weighing on its float. This could serve as fuel on the fire, as the shorts scramble to cover at higher prices amidst the slightest piece of good news

Take a look at Foster Wheeler (FWLT), which is now trading at just 6x expected 09’ earnings, reported a decent quarter with EBITDA of almost 20% and is expected to earn $3.75 in 2008. That said, shares of Foster Wheeler are down about 25% alone last week, creating a great snapback trade. A big plus is that management said that they hardly are seeing any backlog cancellations (they have a $7 billion dollar backlog) and still have $420 million left on its $ 750 million dollar stock buyback. FWLT is dirt cheap, buy it for a snapback

Keep an eye on Gushan (GU), which reports earnings next week, and is likely to surprise to the upside as lower commodities prices should help input costs in the current quarter. Right now, Gushan is on track to earn $1 this year, and possibly $1.5 in 2009, which would mean that Gushan is trading with a forward P/E of 2. Gushan is a $3 stock, with $2 in cash and zero debt, and is likely to surprise next week.

No Analysis added

No Analysis added

No Analysis added

No Analysis added

No Analysis added