Kiplinger’s July Issue highlighted Auer Growth Fund, (AUERX) which has returned 30% a year for 20 years.  The fund is managed by father and son (Bryan and Bob) and seeks wildly growing companies selling at cheap prices; companies have to be growing at 25% annually and selling for 12x earnings or less to be considered.

Today they like the following:

1. Thompson Creek Metals (TC)

a.  Molybdenum is required to make high-grade steel and it is used in chemical processing and other heavy industries and in energy production.

b. Thompson mines and roasts Molybdenum at $6 to $10 a pound and sells it (today the market price is $32).

c. Thompson sees production going from 16 million pounds in 2007 to 24 million pounds in 2008 to 34 million in 2009, and the company has 1 billion pounds of reserve in the ground.

2. ATP Oil & Gas

a. Shares are down 34% since October 2007

b. company develops difficult offshore sites in the Gulf of Mexico and North Sea

c. 2007 revenues were up 45%; 2006 revenues were up 186%

d. company has a lot of debt, but solid reserves and assets to keep growing

3. PC Mall (MALL)

a. Sells computers over the Web, mail and via telemarketing

b. Net margins are only 1%, BUT…

c. Company’s aggressive sales has increased market share and profits are starting to appear, as earnings doubled in 2007 and Q1 2008 profits were up 50%.

d. stock sells for 12x 2008 forecasted earnings

Track these picks and the performance of the Auer Growth fund starting today 6/4/08 at:

http://www.trackthepros.com/categories.php?category_id=968