MARCH BREAK?

LMS

Picked up some LMS today ($22). The stock has been volatile lately. But I thought it has a lot to offer. It is currently traded at about 13X of its 2006 earning and the company is expecting about 10% revenue and earning growth. I thought it is a bit of under-valued. Part of the reason is that it has a great 2005, making 1.85/sh. In other words, the company is punished for doing a such good job. The company has guided its 2006 numbers with caution, stating that it is unlikely to beat its 2005 results. Nonetheless, the 1.65/sh is not too shaby. The market is concerned with unfavorable q/q and y/y comparison. Another reason may be that a part of its business relates to the housing market, which may cause some concerns. Its balance sheet is clean with a small, declining debt. I note there are a lot of insider buying activities at current and higher level. I feel quite comfortable. I believe it goes to $30 before the end of this year, for a 36% return.

CNTF

CNTF reported in-line results and guided its Q1 lower. AH reacted unfavorably and went down by almost another dollar. I am not doing too well lately. Maybe I need a break.