Gold tempts, but here are 2 priced to buy

• Add 500 shares of Synaptics (SYNA, news, msgs) at the open.

• Buy 1,000 shares of Crocs (CROX, news, msgs) at $17 or better.

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Though I think the gold sector is due to rebound in the weeks and months ahead, it's difficult to classify any of the stocks as true dogs given that most are up big over the past year.

Many stocks are also enjoying double-digit gains since the year began. In other words, just because the sector has underperformed recently, it doesn't fit the guidelines of my strategy.

Given my performance to date, some of you might think it wise to alter the strategy a bit, but that would be cheating. As tempting as it is to add shares on Barrick Gold (ABX, news, msgs) and/or Kinross Gold (KGC, news, msgs) in anticipation of renewed dollar declines and market instability, I'll have to pass for now. Fortunately, most of you aren't bound by the same limitations, so I suggest taking a close look at the sector during this brief period of backing and filling.

Following the insiders

As for the Dog Pound itself, I'll start off next week by adding 500 shares of Synaptics (SYNA, news, msgs) at today's open. The company is a leader in the touchstone technology used in computers, phones, etc. The market for the company's products is projected to experience annual growth averaging nearly 20% for the next few years.

Consequently, even if the company experiences some erosion in share or margins due to increased competition, there should be enough industry expansion to allow Synaptics to continue posting healthy, double-digit top- and bottom-line growth.

Maybe that's why insiders have been gobbling up the stock in recent weeks -- taking advantage of its relatively cheap price. The stock is down 60% since peaking in November. At the current price, Synaptics sells at 13 times and 10 times estimated fiscal 2008 and fiscal 2009 earnings, respectively -- about half the projected growth rate. Toss in the fact that the company is sitting on nearly $5 per share in cash (less debt), and the numbers get even better.

When you take into consideration that short sellers are aggressively betting against the stock, you have the perfect set up for a big recovery rally as long as the company meets or beats estimates.

With most of the bad news factored into the stock price, I'll side with the insiders and against the bears and add the stock to my portfolio.

A price too good to ignore

I'll also place an order to buy 1,000 shares of Crocs (CROX, news, msgs) at $17 a share or better. The stock bounced a bit Friday in response to an upbeat analyst report, but it has shown no ability to sustain rallies in recent weeks. In fact, the maker of these ugly but trendy shoes has seen its stock price crater over the past year due to slowing sales and ballooning inventory.

But like Synaptics, the value of Crocs is just to0 good to pass up, especially when you consider that most everyone that wanted out of this stock is already gone. Barring a major negative development, the stock should slowly work its way back into the low to mid-20s.

That will exhaust my cash for now.