A Handful of Buried Treasures from Nancy Zambell

Sometimes the teases that catch the eye of your friendly neighborhood Stock Gumshoe are long, detail-filled, and exhausting … and sometimes, they’re like little frustrating snacks, just enough of a hint that the Thinkolator might track it down, but often requiring a bit of a sleuthing slog.

Today we’re looking at a small smorgasbord of the latter — Nancy Zambell, who is at least as self-congratulatory as any other newsletter editors I’ve seen (save perhaps Tobin Smith, who I don’t see much about anymore), would like you to subscribe to her Buried Treasure Under $10 newsletter … and as inducement she doesn’t lay out a strong argument for any particular stock, but she throws out brief hints about a few of her favorites that she’s still (or newly) recommending.

And I call it a “handful” above, but that all depends — this is more of a Dr. Seuss handful, or a nice handful for someone who had a terrible chainsaw accident, but I’ll share at least three of the ideas with you below and try to get to more in the future.

Here’s the first bit:

“Here are just a few opportunities that we’re recommending right now that you’ll read about in tonight’s Buried Treasures Under $10.

“Opportunities that will continue to rise in this economic environment thanks to rising sales and earnings.

“Opportunities you probably wouldn’t find even on the back pages of The Wall Street Journal, Forbes, or Investors Business Daily!

“For example: The $7.24 startup that’s about to turn every movie theater into a 3-D movie moneymaker thanks to 32% revenue growth in 2009.

“Up 234% in 12 months, this stock is headed for another breakout when its earnings come out in early August….

This one we’ve covered before, Zambell touted this cinema equipment and installation company, Ballantyne of Omaha (BTN) back in May as her “next small cap blockbuster.” Growth has actually picked up a bit for them in the most recent quarter, but it was really 32% last year, my notes on them from May are here if you’re interested.

Shall we continue? I’m cherry picking a few of the hinted-at stocks that sound somewhat interesting, here’s another:

“The $7.53 printed circuit board producer that we’ve already banked a 46% gain on and are holding on to for another double. With 64% sales growth year-over-year, it could come in the blink of an eye.”

This one is DDI Global (DDIC), and they are indeed a printed circuit board marker, they did post 64% sales growth … and they look cheap based on earnings, with a forward PE of 6.7. Be careful with that PE ratio, though, comparing it to their competitors, from giant Jabil Circuit (JBL) to TTM Tech (TTMI) or many of the smaller ones, will tell you that a PE ratio in the range of 6-8 is pretty common for the industry.

I’d have to guess that’s probably because of margin pressures, huge capacity, and tight competition, but I confess that I know almost nothing about printed circuit boards. The stock that actually stands out to me as interesting in this business, though I’ve not yet dug very deeply into it, is BTU International (BTUI), which sells equipment to the printed circuit board and semiconductor manufacturers (it’s not as cheap on earnings, but does trade for 1X sales and 1.5X book value). Just a thought for you, if you’re looking into the sector.

And another …

“This $5.06 company is one of the top 10 providers of power conversion and power management solutions in the world. It reported a 56% increase in sales for its first quarter, and has already handed my readers and 80% gain this year.”

OK, so that one must be Power-One (PWER), which like most of the stocks I’m mentioning is up nicely today. They are no longer anywhere near $5, trading right around $8.50, but they were around $5 back in April as this latest run began … and they did report 56% higher sales in the first quarter, and they do claim to be one of the top ten providers of power conversion and management solutions — they particularly focus on inverters and converters for the green and higher-efficiency market, at least when they market themselves. The shares are not particularly cheap anymore (though they have been not that long ago — the 52-week low was a dollar), and probably because of that and the big runup since April there is a pretty large and growing corps of folks betting against the stock — the short interest is about 12%. That can work in your favor, of course, if there’s a short squeeze and those folks have to cover their bets, but it also means someone’s pretty sure that there’s something weak in PWER’s future.

That’s not the whole list of Zambell’s faves, but I’ll keep looking and dig out some more if there’s interest — in the meantime, let us know if you think there are any winners from this list of small-caps with a comment below.

And if you’ve been a Zambell subscriber, please click here to review Buried Treasure Under $10 for us and let your fellow investors know what you thought. (We’ve had only a few reviews on this one so far, but it’s quite highly ranked at this point) Thanks!


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19 Comments on "A Handful of Buried Treasures from Nancy Zambell"

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Harold Mall
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Harold Mall
July 8, 2010 10:56 pm

Do you know the company mentioned by S&A that is mining gold deep on the ocean floor in the Pacific ocean?

pvkia
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0
July 9, 2010 12:31 am

I would be interested in finding out about this one too… I really don't feel like paying $3,000. to S&A at this time…
Thank you

spreadtrader
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spreadtrader
July 9, 2010 7:33 am

If folks are REALLY plunking down $3,000 for this "advice", I'd like to know where I can buy stock in Stansberry & Associates………………………..lol.

forewarned
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forewarned
July 9, 2010 3:39 pm

Found it—Nautilus Minerals Inc (CA;NUS)

Mark
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Mark
July 10, 2010 11:29 am

The symbol is NUSMF and the Stock Gumshoe has written an article on this. Go to home page.

advantedges
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advantedges
July 15, 2010 2:07 am
If you guys mention NUSMF, one more time, I am going to go short the heck out of it! LOL Meanwhile, Dusty Destry: Why not paper trade for a while with Think or Swim? They have been bought out by TD Ameritrade, so expect a transition. If you want to buy some stocks or options, they are pretty reasonable, unless you are a big time trader and move in and out. Then you need to negotiate an account with Fidelity or Schwab or Scottrade. I don't know anything about Trade King, but they look cheap for their quoted fees. Think… Read more »
destry
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destry
July 15, 2010 12:12 pm

FEMSA (FMX)
This isn't the best place for this idea…And may go un-noticed. We'll see.
I believe in giving-back.
FEMSA fits my pistol……..
38% family-owned…20% share-holder in Heineken; 54% share-holder in Coca-Cola
FEMSA (KOF) . Owns OXXO, the Mexican 7-11…None franchized and nearly as many throughout Latin America as are owned and franchises by 7-11
No debt…..Estimated NAV $56.00/share….Current price $46.00/share, give or take.
"Carrumba"!

seo
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January 31, 2012 1:18 pm

Hey there! I’m at work browsing your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Carry on the excellent work!

slallis
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slallis
July 9, 2010 2:32 am

It can be no other than Naytilus Minierals. About the Solwara 1 project here is there web site http://www.nautilusminerals.com/s/Home.asp also a website about the envirmental impact http://pidp.eastwestcenter.org/pireport/2010/Apri…. Hope this helps but I think it is this project Phase 1 is selling

slallis
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slallis
July 9, 2010 2:34 am

AFat fingers but this is the correct spelling Nautilus Minerals the links are good thou.

forewarned
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forewarned
July 9, 2010 3:31 pm

Anyone know the stock symbol (on Toronto exchange I think) for Nautilus Minerals?

slallis
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slallis
July 9, 2010 2:40 am

Without a doubt this is it, here is the same picture that was in Phase 1 promo video http://www.nautilusminerals.com/s/PhotoGallery-Un

oopfoo
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oopfoo
July 9, 2010 10:13 am

I have one of those sitting next to me. In fact, he gets ALL the Stansberry stuff. It's not all bad, but I swear, I can't STAND the constant selling.

destry
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destry
July 14, 2010 1:11 am

Jeeze "spreadtrader"…I thought Apaches had gotten you.
Stansberry isn't bad…But the negatives (Sell,sell,sell….Expensive in some things),
are spot on……
Personally, I've come to really like Agora's "Capital & Crisis". Good writing; Good ideas. Not much dust to subscribe.
I dropped by the forum….Primarily to get some thoughts on a good on-line trading outfit……
'Found it infested with "termites"…..Not an Orkin guy in sight. "My car broke down, and I….Is that oak?"

spreadtrader
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spreadtrader
July 14, 2010 8:56 am
Hi destry, As you know, there is a HUGE difference between services that know how to trade and services that know how to WRITE about trading. Just because somebody says something with conviction doesn't mean that they shouldn't be convicted…….lol. The "forum" is history. Since Travis changed it over, it is far from user friendly; and understandably, I don't think that he has much interest in maintaining a "regular" crowd in the forum setting. The "Irregulars" are "where it's at". Good articles and ideas there, but it's short on discussion among members. Not sure why that is. Anyway, you need… Read more »
Gravity Switch
Admin
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July 14, 2010 9:42 am
Hi folks! thanks for sharing your thoughts in whatever places are available — and for what it's worth, I am sorry that the new forum software is a pain in the neck compared to the old system, and that it falls so easily prey to spammers. I have failed to improve it because of an overwhelmed schedule, not willful neglect, but the end result is the same. As the summer moves along, I hope to make some improvements in both the free and paid sites, and will have to decide whether I want to ditch this forum software entirely or… Read more »
Ron
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Ron
July 14, 2010 12:05 pm

You can buy Nautilus Minerals on U.S. exchanges under symbol NUSMF on the OTC market.

destry
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destry
July 14, 2010 7:32 pm

Hey, Travis.
No sweaty-da on the forum….I was being wistfully nostalgic, in my own
wierd way. We had a really smart, lively group there…This bunch at home plate here, and the "irregulars, aren't slouches either. Personally, I don't see where you get the energy to do all you do…'Makes me tired all over just watching you….So I take a nap, and try to get over it.
I'm officially retired, now, from the investment industry….After 32 years…
I think I'll get a "real" job….
I'm serious about on-line trading company advice, as to whom you all like.
I don't get a professional discount anymore.

destry
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destry
July 15, 2010 11:34 am
Thank you, "advantages". Your "Dusty" prefix threw me a moment….It's meant for "gold dust"…I picked up the phrase from my old 1st sergeant, when I was a young cavalry officer…His name will be found on the roster of the 5th Ranger Battalion, which, with others, scaled the 90' cliffs of Omaha Beach on D-Day, under heavy German fire. He was 17 years old, and his name…James V. Jackson. A trooper well worth a place in your thoughts. I like your suggestion on "Think or Swim". I'll certainly look into it. I haven't traded in years….The last I did on a… Read more »
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