Thoughts on investing the remaining 7% cash

The following are the stocks in our radar:

• Patni Computers (PTI): This looks like an under-valued Indian outsourcer. About 25% down from the peak as a result of correction in the Indian market. Also, some speculation about private equity firms taking a controlling stake seems to be dyeing. 15% grower trading at a PE of about 14. Click for our detailed analysis of PTI,
• Akamai (AKAM): Previous wall-street darling down 40% from the peak as a result of concerns about growth, competition, and margin. 30% grower trading at a PE of about 25,
• Local.com (LOCM): A very speculative play given the very low market cap. The main idea here is that eventually it will get bought out a premium. Not very expensively priced - $45 million enterprise value, $60 million next years projected revenue, roughly $15 million cash with the burn rate expected to come down. Has patents listed in their web-site that may have some value. Click for our detailed analysis of LOCM, and
• Genentech (DNA): About 25% down from the peak. Do not know the reason why it came down that much over the last 2 years. Expected growth rate is still in the mid-20’s.

In general, a lot of opportunities have been missed recently because of a lack of liquidity based on a determination to minimize trading. AAPL & MCO at ~52, ISRG at ~90, NVT at ~33, CVNS at ~15, KYPH at ~44, PFACP at ~6, etc. comes to mind. However, the other extreme of trading constantly as was done in the 1998-2000 timeframe was not good either. So, a middle ground should be what needs to be done…