Market Fears Yield Screaming Buys for Smart Investors: INVC, FTO, Others

The sell-off triggered by credit concerns and the sub-prime mortgage disaster (a disaster that is yet going to skin several financial companies and shake more markets) nevertheless provides some outstanding investment opportunities. Refiners, for example, have sold off to ridiculously low levels while oil is rising and profits are strong. Here are two SCREAMING BUYS for your consideration: Frontier Oil (FTO) and Marathon Oil (MRO). Both are well-run, growing companies that own one of America's rarest and most valuable classes of assets: refineries. We haven't built any in this nation for years due to the huge costs and regulatory/environmental barriers, but those that exist are money machines. The low P/E of these companies, the high profits, and the strong track record makes the big sell-off a golden buying opportunity.

Another company moving toward significant success but recently abandoned by spooked and poorly informed investors is Innovative Card Technologies (INVC). This is a company with tremendous solutions to security problems facing consumers, banks, and others. I called investment relations this week to understand the company and technology better, after looking at their patents. I came away highly impressed. They sent me an example of their slim credit card that includes laminated electronics providing one-time passwords in an LCD field on the card. One thin card, like a credit card, can serve as a credit card, a building access card, a remote computer access card with one-time password generation, etc. They are partnering with Verisign and RSA, and they are working with other companies. Any news of additional partnerships could give this stock a huge boost. 

I think some investors were spooked by the resignation of a board member. He resigned for health reasons since he's fighting cancer. The resignation results in a technical compliance problem with SEC regulations regarding the composition of the board, for they need to add a replacement to have enough non-employees on the board. They have until January 2008 to fix this problem, but meanwhile, when you look at INVC on Yahoo's financial pages, you see an ominous message about failing to be in compliance with SEC regulations. I think a lot of people fled the stock as a result, thinking "Enron!" A call to Innovative Card Technologies' outstanding investor relations office could have saved them from the loss. 

The stock was above 6 recently, but has tumbled to 3.12, where I bought some more today (after buying at 3.8 and 3.7 earlier this week). Awesome buying opportunity.  

Precious metals are also screaming buys right now. Silver especially. Look at the supply and demand fundamentals in this PDF file from Endeavour Silver , one of my favorite picks (EXK).  Get physical silver while it's cheap, cheap, cheap. Also consider high-growth-potential stocks such as EXK, Silver Standard Resources (SSRI), Sterling Mines (SRLM.ob), Great Panther Resources (GPR.TO), etc. For gold, I live Minera Andea (MNEAF.on), Kinross (KGC), Agnico (AEM), Yamana (AUY), and Auex Ventures (XAU.V). 

Finally, I think selected uranium stocks are one of the biggest SCREAMING BUYS out there. Dennison Mines, a profitable mid-tier uranium miner (DNN), has had a huge haircut in the past week or two. Fundamentals should still be solid - awesome buy. Uranium corrected in price recently and spooked a lot of people, but the fundamentals point up, up, and up. Get into uranium now. Consider Dennison, JNR Resources (JNRRF.pk), and Abaddon Consolidated Resources (ABNAF.pk) - all on sale right now. Buy and hold these for a couple years.  

links: digg this    del.icio.us    technorati    reddit