Energy Solutions (ES)

I just bought 1000 shares of Energy Solutions at $5.50. I read some
information about this company this morning and decided to buy. They
had negative earnings last year and haven't done well over the past 3
years which has dragged their stock from $20/share to $5/share. But
they are projected to have positive earnings this year (2011) and
their current projected stock target by the analysts is $7.60/share
for this year. This stock is trading at a discount of 24.74%, when
comparing the current price of $5.55 vs. the target price of $7.60.
Their total levered free cash flow is at 214.56M, which represents
about 44.52% of the company's market cap.

However, they have significant debt and long-term liabilities which
means they will need to generate significant cash flow and earnings to
keep up with debt payments, which is probably the biggest reason why
the stock is down. But as the economy improves, this stock should
move steadily up. I'm hoping for $1 increase in the stock price in
the next 6 months for $1000 gain.

And besides, I have to have faith in the building sponsor of my Utah Jazz!

JG

Winnebago (WGO)

So we've all heard of Winnebago, the classic maker of RV's and other
large vehicles, but what you probably don't know is that this once
industry leader was hit desperately hard by the recession and their
sales have fallen from $1 billion to a low of $200 million and back up
to $450 million over the last 3 years. I work in the travel industry
and I know very well that the travel industry among the hardest hit
during the recession. The fact is that RV's are luxury items that are
generally purchased on credit and only when consumers are feeling
flush in their pocketbooks with strong prospects of job creation and
growth. All of those economic indicators have fallen over the past 3
years and Winnebago is the victim. High fuel prices may continue to
depress this stock, but as the economy rebounds, Winnebago will follow
suit.

This stock is trading at $11.97 with a 1 year target estimate of
$14.67. It's P/E is a conservative 19 and it has a return on equity
of almost 19%. It's currently trading below is 200 day moving average
of $13.25 so this could be a nice buy. Here is what one website is
saying about Winnebago:

Analysts think sales will rebound 20% in fiscal 2011 and 2012. The key
is the economic variables: Falling oil prices and rising employment.
If those two catalysts come into play, then long-term investors are
likely to note just how cheap this stock now is, trading at roughly
six times peak earnings from the last cycle. The stock has come down
from $30 in 2007 to a recent $12, but if the economy appears
increasingly healthy later this year, look for shares to move back up
smartly into the $20s.

I'm thinking of buying 100 shares to start building a position. Let
me know what you think.

A123 Systems (AONE)

I've increased my position in this stock to 2000 shares. The most recent drop has motivated me to buy additional shares at the $5.75 level. Here are some additional insights from seekingalpha.com on A123:

This lithium-ion battery maker is now a "show-me" stock. After missing sales forecasts for a number of quarters, shares have slipped from more than $25 in late 2009 to less than $6. Those weak sales results led to higher-than-expected losses, which led to fast-sinking cash levels. As a result, investors began to realize A123 would need to keep selling more stock to stay afloat.That vicious cycle now looks to be at end. The company just raised another $250 million, and analysts increasingly think the era of big cash losses will wind down. By the time the cash from this latest capital infusion has been spent, A123 may actually be a profitable company.Here's why: A123 possesses strong engineering capabilities in its lithium-based batteries that are aimed at the transportation and electrical grid markets. This enabled the company to sign up an impressive roster of major clients. Trouble is, those clients have been slow to get going with their own cutting-edge programs. For example, Fisker Automotive, a rival of Tesla Motors (TSLA), has been dogged by delays in launching a new electric luxury sedan, but the sedan should finally reach customers this summer.A123 has also announced that a major unnamed automaker has signed up as a customer. Investors await more details about this mystery customer and about what type of deal both parties have agreed. But this news could help clarify why analysts think that after several years of disappointment, A123 is likely to see sales more than double in 2011 to around $200 million and double again in 2012. If that comes to pass, then A123 will be close to break-even and won't need to raise any more cash.With the stock now more than 75% from its late 2009 peak, these catalysts highlight that shares now hold more reward than risk.When you swing for the fences, you can also miss. Each of these stocks may prove to be dead money if these catalysts fail to develop. Yet they do appear to have found a floor at these levels, so investors aren't absorbing the usual amount of risk when looking at swing-for-the-fences-type stocks.

Still a risky play and very much a speculative play, but could really pay off big!