Don't Miss My
 Interviews
    - with -   
 John Bogle and other
 market luminaries 

 Small Cap Specialist
 Crystal Equity Research

Enjoy this excerpt from the current issue:

I bought LED --- (ticker: ---) for the Sine Wave portfolio in April. My investment club bought this stock on my recommendation twice. The first time we made money. Just recently, we lost money. When it fell from $18 to $14, I sold the Club's shares (it hit our stop-loss) and bought the stock for myself.

I've been watching this company for a long time. Investors are either in or out of love with it. It moves a lot on sentiment, not fundamentals. Understandably, investors are out of love with it at the moment after 3 disappointing quarters and the announcement of a 4th. So why did I buy it?

I find it a compelling value at $14. Half the recent problems are temporary - production glitches, etc. The other half - increased competition, rising health care costs - are more serious, but already baked in. The order backlog, at last report, was higher than a year ago. Also, the company brought new capacity online in March to handle increased demand for ---. Finally, I am impressed by the personality of this company - they are straight-shooting Midwesterners with a strong work ethic.

I will get my return eventually, either because strong demand will drive fundamentals to more favorable territory, or investors will fall in love with this stock again, or both.