Fat Profits for Fat Tuesday

In honor of Mardi Gras, we took a look at our portfolio buy lists and selected the stocks we think have the best chance of delivering money-doubling profits. Now these aren’t the flashiest names out there, but while the companies themselves might seem a little boring, the returns should be anything but.

Even if you don’t plan on overindulging yourself in food, drink and revelry today, why not splurge a little on some great investments. Here are the best stock picks for a shot at 100% returns:

LJ International, Inc. (JADE)

Hilary Kramer, Editor, Breakout Stocks Under $5

Wholesale and direct retail jeweler LJ International, Inc. (NASDAQ: JADE) is a direct play on the rapid growth and increased spending of China’s consumers. As China’s middle class earns more and spends more, it is also adopting Western spending traditions, such as buying diamond engagement rings and gold jewelry for anniversaries and special occasions, and Hong Kong-based JADE is one of the biggest beneficiaries of this trend.

The company has essentially reinvented itself specifically to take advantage of China’s growth. While it started as a wholesaler mostly to the United States and Western Europe, it now has expanded to be a direct retailer in China. The retail store division, Enzo, launched in 2005, and has grown rapidly. With 124 stores in China, the company is projecting 200 stores by mid-2012. Enzo’s expected growth is what makes JADE a breakout stock. Currently trading just above $4, my target is $9. Buy JADE below $5.50.

SinoCoking Industries (SCOK)

Robert Hsu, Editor, China Strategy

You’ve seen the headlines and know that China’s coal industry is notorious for its poor safety record. So the Chinese government is shutting down small mines and selling them at fire-sale prices to select, well-connected buyers. And let me tell you, SinoCoking and Coke Chemical Industries (NASDAQ: SCOK) — my No. 1 way to play the consolidation in China’s coal industry — is connected. In fact, its CEO came along with Chinese President Hu’s entourage on his recent visit to the United States. Out of the many successful entrepreneurs that I know, including several world-class billionaires, this company’s CEO is an absolute standout. He has an incredibly strong focus and dedication toward his business. 

I’ve gotten my hands dirty at this company’s mines in my due diligence, and I can honestly say that this is going to be a very big winner for us — to the tune of 200% to 300% in the next few years. Just days ago, I spoke with my knowledgeable sources to get an update on the company’s progress. According to them, three positive catalysts — a new coking facility, coal mine consolidation plans, and coal mines reopening — are all right on schedule. Each of these three catalysts will increase company earnings substantially, and I expect the official good news to come out in the next few weeks.

Cowen Group (COWN)

Hilary Kramer, Editor, Breakout Stocks Under $5

Cowen Group (NASDAQ: COWN) is an investment bank that has been around for over 90 years, so it is a real veteran of up and down cycles. The stock is undervalued and positioned for significant upside as the business is on solid financial footing with strong gains across key businesses, including M&A, capital markets and asset management. In addition, the company has excellent management and is a potential takeover candidate at a substantial premium.

Cowen just reported final fourth-quarter results and, as expected, swung back to profitability, reporting Q4 GAAP net income of 6 cents per share. Excluding certain items, profit was $6.4 million, an improvement from the loss of $12.9 million in the previous quarter and the loss of $21.1 million the prior year. Revenues were up significantly (65%) on a sequential basis, on very strong proprietary trading, although the company has yet to gain significant traction in either the brokerage or investment banking business.

Buy COWN below $5 for a target price of $10.

Cognex Corp. (CGNX)

Louis Navellier, Editor, Emerging Growth

Cognex Corp. (NASDAQ: CGNX) may not be a name you know, but the company’s products are inside manufacturing plants all around the world. We’re all familiar with the images of workers standing along assembly lines inspecting products’ each and every detail with their bare hands. Well, those days are long gone. Today, companies use devices like those made by Cognex to find defects in their products. Essentially, Cognex manufactures mounted and handheld sensors that scan products as they move along an assembly line, inspecting a variety of elements (fit, color, alignment, etc.) and looking for any defects. Bic and Sony (NYSE: SNE) are just a few of the big-name companies that enlist Cognex’s help in ensuring that the products they make are assembled correctly and meet certain quality standards.

The company markets its products to customers all around the world, and non-U.S. sales account for approximately two-thirds of the company’s business. This company is benefiting from a robust capital spending cycle right now that is especially strong in emerging parts of the world, like China. Pick up shares under $37, and I think you could have yourself a double in the next 12 months.

Lannett Co. Inc. (LCI)

Nancy Zambell, Editor, Buried Treasures Under $10

Lannett Company Inc. (AMEX: LCI) is one of the top generic drug manufacturers in the United States, with a wide-ranging product portfolio and a healthy R&D pipeline. Through strategic partnerships and acquisitions, the company grew its sales by 164%, from 2005 to 2009, and now is projected to pass $125 million in sales for its fiscal year, which ends June 2011.

Right now, the shares are trading at a discounted level, and I think the company is a great buy. It has takeover potential and is undiscovered — only 8% of the company’s shares are held by institutions. The stock is volatile and should be considered aggressive. After all, the company operates in the drug industry, which is heavily regulated with new competition constantly on the heels of the more-established companies.

But the stock’s potential is very enticing. And, right now, all my technical indicators are a go, especially its moving averages and MACD (which tracks convergence and crossovers of moving averages).

Buy LCI below $5.60 for an initial target of $8, but shares could go even higher. The company is awaiting FDA approval for a new drug application for Morphine Sulfate Oral Solution, which, if approved (and I think it will be), should make this stock an easy doubler.