Stocks That Almost Made the Cut: July 2006

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July 4, 2006 | S.T.A.M.T.C | | Author Asif

As I mentioned in the May investment newsletter, I should have renamed this section “Stocks That Should Have Made the Cut“. A company I considered last month called OraSure Technologies (OSUR) and then mentioned in Stocks That Almost Made the Cut: June 2006 gained 8.8% in June while Logitech (LOGI) lost 4.83%. However I am very satisfied with the 8.23% gain in Infosys (INFY) in June followed by additional gains on Monday and also like the long-term prospects of Logitech.

Stocks I considered for this month’s SINLetter and then decided against were Suntech Power Holdings (STP) and Syneron Medical (ELOS). Suntech Power is a profitable Chinese solar energy company whose revenue is expected to grow 126% this year and who has been awarded an exclusive contract to supply a 130 KW solar energy system for the 2008 Olympic Games that will be held in Beijing. However with the extreme volatility in alternative energy stocks in recent weeks, a shortage in silicon that is required to make solar panels and Suntech’s high valuation (P/E of 96.17 and P/S of 15.02), I decided to keep Suntech on my watch list for now.

Syneron Medical (ELOS) is a company that makes aesthetic medical products and has been covered extensively by fellow blogger Subbu in this post and this follow up post. While I really like the current valuation of Syneron, I like the valuation and future prospects of Intel (INTC) much better and hence Syneron Medical remains on the watch list for now.




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