NXP Semiconductors: Upside from Multiple Growth Areas

A New York presenter recommends NXP Semiconductors (NASDAQ: NXPI, $34.18). The company stands to benefit from multiple growth markets. The biggest opportunity lies in near-field communication or NFC, where the company is the recognized leader. NFC allows smartphone users to make payments just by waving their phones near a point of sale terminal. Some of the new Android models already have NFC chips, and Apple is rumored to include it in the next-generation iPhone. NXP has also developed a new solution for compact fluorescent bulbs that allows dimming, a multibillion market potentially. RFID is finally going mainstream, another area where NXP is very strong at. The company has been saddled with debt on its separation from Phillips in 2006, but has been paying it down. The presenter forecasts $4 in earnings power. Based on 12-15x the peer group is trading at, the upside could be quite significant.

ACCO Brands: Big Upside in Margin Expansion

A Boston presenter likes ACCO Brands (NYSE: ABD, $9.47) at the current level. This leading supplier of office products is finally growing revenues after two difficult years. The new CEO's focus on rebuilding customer relationships is paying off. The company has rationalized its cost structure and can now really lever even a modest top-line expansion. ACCO targets mid-teen operating margins versus 8.6% currently. With another debt refinancing likely in 2013, the earnings power may reach $2.50-$3.00 at $1.6bln - $1.7bln in sales.

America's Car-Mart: Profitable Niche

A Boston presenter recommends America's Car-Mart (NASDAQ: CRMT, $25.55). The company focuses exclusively on selling used cars to customers in rural areas with bad or no credit. CRMT's competition is highly fragmented. The company is expanding its dealership base, but is doing it in a very controlled manner. CRMT provides all of financing for its customers. Loss rates are in the low 20%, but the highly profitable model has sufficient room to accomodate these losses, which have been improving in recent quarters. The stock is undervalued here, based on projected earnings. The company has been actively repurchasing shares and intends to continue with stock buybacks.

Universal Electronics: Upside from Growth in Asia

A Boston portfolio manager recommends Universal Electronics (NASDAQ: UEIC, $28.72) as a buy. UEIC dominates the market for wireless remote controls. The company acquired one of its suppliers Enson last November. The deal is crucial to UEIC's prospects as it provides the platform to substantially expand the company's presence in Asia and other fast-growing emerging markets. The presenter targets a 30% upside from the current level. The balance sheet has a significant cash position and little debt, which is expected to be paid off by the end of the year.

Cleveland Biolabs: Important Near-Term Catalysts

A New York-based portfolio manager points to several pending developments that can move Cleveland Biolabs stock (NASDAQ: CBLI, $7.44). A BARDA grant is one potential near-term catalyst. Other catalysts possible later this year include the HHS issuing an RFP for an anti-radiation drug where we may learn how much the agency plans to allocate for an emergency stockpile, the company starting trials with its CBLB502 drug seeking to reduce negative side effects of radiation treatment on cancer patients, and publication of research papers.

Palomar Medical: No Change in Bullish Outlook

A New York presenter remains just as bullish on Palomar's prospects as he was two months ago when he presented the name at one of our small cap idea forums (NASDAQ: PMTI, $14.07). He noted then that the stock had a very big and fast run up and would likely take a breather to offer an even better entry point. PMTI has dropped substantially from the $16 level, as he predicted. The presenter argues that it's a 2-3 year story that has the potential to work well enough to double the stock price over that time.

Roulston Consultant to Appear on Bloomberg This Week

Craig Johnson, President, Customer Growth Partners and Chair of Roulston Research Retail Group, has recently been quoted in various media outlets, discussing the outlook for some individual companies in the retail space. He will appear on Bloomberg TV & Radio this Wednesday, March 23, in the 5:00 PM ET hour. He will be discussing retail outlook and WMT vs TGT vs Aldi in particular.

Craig Johnson is President of Customer Growth Partners of New Canaan, CT, consultants serving the retail and other consumer industries. He has three decades of experience in consumer service industries, in both senior executive and consulting roles, and has advised institutional investors and private equity participants on opportunities in the consumer discretionary sector. He is cited as an authority on retail and consumer issues in publications such as Business Week, Fortune, New York Times, The Times (London), USA Today, and the Wall Street Journal. His retail clients have included firms such as BJ's Wholesale, Crutchfield Electronics, JC Penney, Lands' End, Lowe's, Perry Ellis, Simon Group, Toys R Us, Walt Disney, Westfield America and Williams-Sonoma.