Bob Auer, portfolio manager at Auer Growth Fund, has a simple strategy: Looking for stocks that have earnings and revenues up 25 percent year-over-year that can be had cheap below 12 times earnings. He shared his best plays.
“We’re buying them at half of what we think they’re worth and we’re looking to sell them right when they get at what they’re worth,” Auer told CNBC.
Intel—“It has the growth, but it’s not getting the respect,” he said. “This stock in the dot-com era used to trade at $80 a share and now it’s $20, but no one wants it—and it’s probably five-times the company it was back in 2000.”
Apache—“Not many oil stocks are meeting the criteria right now, but this company is expected to go from $5.50 for earnings to $10 this year and over $12.50 next year,” said Auer.
Corinthian Colleges—“Corinthian is our favorite," he said. "They actually train people to do something when they get out…actual things that people can do and be productive right away, as opposed to needing more training.”
- Watch Auer's Previous Appearance on CNBC (Mar. 10, 2010)
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Auer does not own shares of INTC, APA or COCO.