Watch maker Movado Group Inc. said Thursday it expects 2008 earnings to fall 8 percent because of higher tax rates, sending shares tumbling on Thursday. Earnings are expected to come in at $1.72 per share instead of the $1.74 per share that analysts expected. So the stock is down 16%. Meanwhile, they trade at 10x cash flows, are well positioned in the luxury space, have a great balance sheet, and could be an acquisitions candidate. This is a case where the stock has sold off too much.

Reaffimed guidance and the stock fell 10%. Meanwhile, they have a forward P/E of 12. Everyone in the US is nervous about China stocks, but the Shanghai Market is back at all time highs, leaving the US/Chinese stocks in the dust. Analysts still expecting EPS to come in at 53 cents for 2007 and 70 cents for 2008, up from 29 cents in 2006.

The stock is flat with last week, despite continued selloff in the subprime space. I think investors are starting to realize that IMH is not a subprime lender at all but an alt-A lender, which is a cut above subprime. Given that subprime paper is now selling at 96 cents on the dollar, as opposed to the 80 cents on the dollar the media was hypothesizing it would sell at, IMH is probably in better shape than people expect.

Similar issues to IMH. This bank been unfairly crushed due to subprime mess.Unlike NEW and LEND, FMT never even had a liquidity crisis because they lent on deposits. Stock now priced for bankruptcy, pricing at zero their commercial real estate lending biz which is doing fine.

Everyone is worried that this clean coal company will lose their deal with TXU to build a clean coal plant now that TXU is being bought by KKR. The stock has fallen from the 9s to the 5s since the TXU/KKR deal was announced. But the reality is that KKR has already stated they will keep the environmentalists happy, despite a planned shutdown of several TXU plants. The EEE deal is going to stay intact and this stock should make its way back to the 9s.

Crystallex. The Venezuelan gold mine is close to getting a permit to develop its mines. The mines have 14mm proven ounces. The stock has been cut in half amidst worries that Chavez would start nationalizing commodity companies but Chavez has no interest in nationalizing a Canadian company that actually knows how to pull gold out of the ground and the expedition of the permit process is proving that. This stock could double in a week with the right momentum behind it.

The company lowered its revenue forecast from $1.06bb to $1.05bb and lowered its EPS forecast to $1.75 from $1.84. Wall Street is punishing it by sending shares down 13%. Last year EPS was 1.54 so the company is still experiencing double digit growth. $250mm net cash in the bank, the electronic payment processing company trades at just 10x trailing cash flows and probably even less on forward cash flows. This company gets upgraded this week when people realize how cheap it is. The Columbia Acorn Fund, one of the best value funds out there with a 17% average annual 5 year return, owns the stock.

Down 22% - Shares of Insituform Technologies Inc. (INSU) lost about a quarter of their value on Thursday after the company warned of lower profit for 2007 and announced plans to exit its tunneling business. At the current levels the company trades for 20x earnings. Earnings which are stable and does not take into account potential growth in their water pipeline rehab business which could grow as much as 25% over the next year.