IDCC and CPHD

Welcome to lowcapital.blogspot.com, home of Smart Money for the Small Investor. Sorry for teh delay in posting, but my cpu died on Friday afternoon, which not only kept me from blogging, but knocked me out of trading for the second half of Friday! Here are the two stocks I recommend, Interdigital Communications Corp (IDCC) and Cepheid Pharmaceuticals (CPHD). Both were slightly down today, and I think that makes them an even better buying opportunity.

IDCC is a wireless technology company that does everything from cell phones to routers, and this is an industry that is exploding with growth. This stock is one I think is ready to take off too. It has a trailing P/E of 9.6 and a forward P/E of 5.4, which means even if it just maintains it's low 9.6 we should see a 13 point gain by next year... I'm personally looking for this company to DOUBLE in price. That's right, I'm looking for it to go from $33 to $66. Now that's what I call a good investment.

CPHD is a company that focuses on genetic testing equipment. Their technologies allow researchers to perform analyses in about 30 minutes that used to take a week of tedious manual labor. It's a company that is still losing money (like many biotechs), but is starting to look better and better on the balance sheets.

The market as a whole should continue to be bullish, with the CPI coming in very low. That means the Fed will likely hold its hand, and if the CPI stays low, you'll perhaps see the Fed loosen up. Can anyone say "deflationary Bull market?"