NITE has no long-term debt and a little over $200 million cash on the balance sheet. In the past year the company has earned a 12% return on equity and is working on a 13% net profit margin. The company has just entered the foreign exchange market, which should increase earnings and has very little correlation to the equity markets.

Avista has been able to grow earnings per share by 15.7 percent per annum over the past three years. The company is also generating close to $4 per share in cash flow. The stock price is also backed by about $7 in cash. Avista is paying a 2.5 percent dividend yield as well.

After several losing years, Ocwen Financial Corp., has been able to turn things around. The current twelve month trailing earnings are 44 cents per share, up sharply from 7 cents back in 2003. They have also been able to grow revenue over the past four years by an annual rate of 36%. My research tells me that there is a good probability that OCN has turned the corner and higher profits and stock prices may be realized in the very near future.

Management has been able to generate a return on equity of over 21% over the past year. Profits margins have been trending higher over the last several years. Close to 25% of the outstanding shares are held by insiders who have a vested stake in the success of the company.

AEOS is firing on all cylinders when it comes to the teen market. Operating margins have been steadily increasing, and the company is now working on a 24 percent operating margin. It has no long-term debt, and management has been doing a fine job by showing a return on equity of greater than 20 percent.