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ChangeWave Investor/ Tobin Smith8/23/2007 12:01 AM ET

Now's the time to grab great buys

I called a market bottom Friday. Capitulation selling hit our goal: The five days with 9-1 down stocks -- 896 stocks with 52-week lows and 15 with 52-week highs -- were the key.

I'm buying leading stocks that are riding waves of growth and a few high-yield stocks that have plunged as much as 70% for no reason in the market's pullback.

Here's why I'm jumping into these seven companies:

  • I love the "negawatt" business -- reducing watts consumed at home and the office by managing when your appliances are used and by managing your energy meters. Echelon (ELON, news, msgs) is No. 2 in the industry but growing 50% faster than the leader, Itron (ITRI, news, msgs).
  • Oilsands Quest (BQI, news, msgs) controls 780,000 acres of Canadian oil sands that have been appraised at $18 a share -- but are selling for less than $5.
  • Lululemon Athletica (LULU, news, msgs) sells the hot workout gear for women -- period. It has only 40 stores in North America but plans 250 over the next three years.
  • Terra Nitrogen (TNH, news, msgs) is an ammonia maker for the corn industry in the U.S. It got killed in the sell-off but has an attractive 15% dividend.
  • Zoltek (ZOLT, news, msgs) is the game-over dominator of carbon-fiber blades for the wind-power industry. It's sold out for the next two to three years because of so much demand, but it now has its manufacturing chops together.
  • Synchronoss Technologies (SNCR, news, msgs) is a proxy for Apple's (AAPL, news, msgs) iPhone. Its software connects smart phones to networks for registration, updates, etc.
  • Deerfield Triarc Capital (DFR, news, msgs) was hammered by the subprime-mortgage mess even though it had very little exposure. It's been selling at a 40% discount to book value. That's insane!

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