My second choice, unusually for me, is based on the chart as much as the fundamentals. Premier Direct (PDR) looks to be a terrific recovery stock based on where it has fallen from and where the chart implies there is resistance. At 56p currently the main resistance appears to emerge at 120p which satisfies the criterion of 100% from today.
The EPS has fallen from 15p in 2004 and 20p in 2005 to 8p last year. A forecast of 4p for July 31st 2007 suggests to me that the leaner company with cost-cutting in place could return to somewhere nearer the 8p EPS (of last year)for 2008. On a PE of 12-14 that also neatly falls into the 100p to 120p required for this stock to double.
Not without risks, I am not heavily into this one as the gearing is very high and one of my selections last year, HBG, demonstrated what can happen there.
