BBW fell 23% on Friday and ended up on the biggest % losers from Friday. BBW guided the earnings per share on the quarter down significantly from 15-19 cents to 7-10 cents and guided the year down to $1.55-$1.65, down from $1.65-$1.75. A good rule of thumb is that if a stock falls a higher percentage than the percentage of the EPS per year guidedown, then it’s a good potential for a snapback play. Even with this guidedown, BBW has a forward P/E of just 12 and trades at a multiple of just 8 over cash flows. Its an excellent buyout candidate here and that’s what people will be whispering on Monday. This is a buy at the open and hold for a good 6%-10% quick snapback.

GS is also a candidate for a snapback after its severe selloff on Thursdsay. GS got killed on Thursday after it reported its quarterly numbers. GS reported profit of $4.93 topping Wall Street projections of $4.79. Unfortunately, though revenue fell from $10.18 Billion from $10.24 Billion a early earlier. Goldman still made a large percent of its revenue from trading; which has been its bread and butter. It also trades at a 9 multiple compared to the industry average of 11X-12X. It’s rare to get a best of breed stock with a lower multiple then the industry average which just got hit hard after reported good numbers. GS finally is being hit with the worries over the subprime fiasco, which is also hitting Bear Stearns. But the underlying business is healthy, earnings are great and better than expected, and the company trades for less than 10 times forward earnings. We can easily see a quick 3-4% comeback.

On the breakout side, we have drillers like UNT and PDC, both of which are our Takeover Targets portfolio that gets updated once a month. If you have a few million acres of land you'd like to drill in search of oil or gas, you would hire Pioneer to come in and do the job. As long as people need oil and as long as oil prices remain about $40 a barrel, oil companies will be willing to spend more money to drill in places where it is harder to extract the stuff. PDC hit a high of $16 a share back at the end of May before backing off back to $14- This creates a great buying opportunity for those who think that Big Oil will be buying up smaller based niche companies before the republicans leave office.

PDC has been rumored yet again as a possible takeover target. James Altucher wrote " If you have a few million acres of land you'd like to drill in search of oil or gas, you would hire Pioneer to come in and do the job. As long as people need oil and as long as oil prices remain about $40 a barrel, oil companies will be willing to spend more money to drill in places where it is harder to extract the stuff." PDC hit a high of $16 a share back at the end of May before backing off back to $14. This creates a great buying opportunity for those who think that Big Oil will be buying up smaller based niche companies in fear of Dems controlling all 3 branches.

Akamai, the Cambridge, Mass.-based digital storage and delivery provider, recently announced that it’s Q1 profit spiked by nearly 67% on strong revenue growth year over year. The company also reiterated its full year outlook. This met analyst expectations but shares took a beating. As Tim Klasell, an analyst with Thomas Weisel, put it, “although AKAM reported a solid quarter with y/y organic revenue growth in excess of 44 percent, according to our estimates, we believe investors have come to expect a solid beat and raise of guidance almost every quarter…although Akamai has superior growth to most stocks in the comparable group, we believe upside will be limited until investor expectations wane.” But Klasell still has a $50 price target which would imply a nearly 18% return from current levels. Snapback.

Every money manager owns XOM, which has been perfect for the retail investors. XOM is breaking out to new highs for a number of reasons. People want to have “oil” exposure in their portfolio without actually owning the normal volatility that occurs within the USO or the oil sector in general. While XOM certainly won't double overnight it could easily run to $100 if we see oil stay above $70. Wisdom tells investors to sell once everyone owns a stock; but the market does not elect stocks to their 52 week high list for nothing. If oil keeps on rising, you will see people pile in XOM.

Eastman Kodak Co. shares roses to a 52 week high after it introduced a type of color-filter technology that could make cameras take better pictures in poor lighting. EK also traded 3-4x times’ normal volume once the news was announced. EK has been rumored for sometime as a potential take-over target from a number of different companies. If the technology succedes it would bring the industry one step closer to a flash-less picture, which is especially appealing to chess-phone makers. Noted value investors Prince Al-Waleed and Bruce Sherman of Private Capital own huge positions in EK. Look for analysts upgrades as a catalyst for the next move up.

On Monday, JGD management disclosed a 5.1% stake in NETM and disclosed meetings with the CEO and the Board of Directors about negotiations regarding the terms and conditions of a confidentiality agreement with the company. NETM is a high risk/high reward stock which could fly on any news/partnership. The company has no debt which is a bit shocking for such a small cap stock. The best hedge fund ever, Renaissance Technologies, also has a position in the small cap tech company.