There seems to be a huge misunderstanding on BRLC. xWall Street hates uncertainly and whats uncertain right now is whether or not BRLC is pulling its flat panel displays from Circuit City stores. CC is supposedly trying to find another flat panel display maker to buy from according to analysts but BRLC released a note later in the day that said they are fully commited to CC. The stock fell 90 cents, or 16.4%, to $4.56 on concerns about this despite the fact that demand is so huge for BRLC flat panel displays that regardless of CC it probably would not affect BRLC’s bottom line. This could be a pop right back to $5 on a snapback play. . BRLC appeared on Biggest % Losers.

HealthSpring got slaughtered yesterday on one of the biggest market days of the years. The managed care provider reduced guidance for the year from $1.55 to $1.20 as rising medicare costs are hurting the bottom line. That said, this company is dirt cheap. All the hedge funds and mutual funds knew the risks here and still quality operations like value fund David Dreman and activist fund Perry Corp who owns 9.4% of the company. Even at $1.20 the company trades at just 16 times forward earnings. Back out their$500mm in cash with no debt and the company trades at just 9 times earnings, even with the reduced guidance. Throw in their just-announced $50mm buyback, plus the two quality investors who have room to back up the truck and we have all the makings of a snapback play here. HS was a member yesterday of the Hot List

Many prop traders know that the best time to buy a stock is when its made a huge spike, and then pulled back on profit taking. The idea is that it will hit new highs before long. NSM recently announced earnings that crushed expectations and the stock soared. Yesterday, inevitably, it had a 2% pullback. But no matter. The company also announced it was going to do a $2bb stock buyback on the open market. Management is made up of believers. NSM is on our list of Top Insider Purchases and Buybacks. The company has a pristine balance sheet with slightly over $800mm in net cash and only trades at 12x EBITDA. Analysts expect earnings to grow from $1.21 to $1.50 this year so there is clearly a disconnect in the market between the growth and the cheapness of their multiple. I think this stock hits $30 fairly quickly.

A Buy at the open triggered by the 3x2 system. Since January 1, 2006, there have been 26 successes out of 32 trades for an average profit of 4.03% BRCD is also on our top tech takeover targets portfolio where we state: “Brocade is in the front line in providing sophisticated storage solutions into the corporation. They provide the software, the switches, the bandwidth,the hardware know how to build clusters, mirroring, backups, etc. CSCO has been building out its storage with its latest acquisition of neopath but I think a buy of BRCD would make it game over. BRCD trades at 17 times cash flows but they will probably double those cash flows over the next year,making an acquisition quickly accretive. Analysts expect revenues to grow from 1.3bb this year to $1.6bb next.”

A Buy at the open triggered by the 3x2 system. Since January 1, 2006, there have been 35 successes out of 40 trades for an average profit of 4.08% Forward P/E of 10. P/E of 12. Beaten or met estimates for the past 4 quarters in a row. Analysts expect earnings per share to go from 81 cents to 1.00 over the next year.

From the Rising on Unusual Volume List, SSYS was up 4.8% yesterday when it was announced it would be replacing Lone Star Technologies, which is getting bought by X, in the S&P 500. Funds already started scooping this up but my guess is this can hit $50 fairly quickly over the next few days as index funds and ETFs dump the shares of X they are getting in the merger with LSS and are forced to buy shares of SSYS. I also like SSYS for the long run as a very innovative “green” play and I have an article coming out on this in the next few days. Suffice to say, though, it has a great balance sheet of $42mm in cash and no debt and a reasonable 26 P/E considering almost 100% expected earnings growth.

On our biotech short squeezes list. 41mm shares short. That will cushion any selloff from here. And the slightest ounce of good news, of which DNDN seems to have plenty, is enough to send this 30% higher.

Still being punished for the subprime mess. Meanwhile, IMH is not even a subprime lender. They focus on Alt-A loans which is a cut above subprime. NFI rose 6% yesterday on decent volume and I think IMH follows in sympathy