A week ago, I designed a promise that I’d abandon my unfocused ways and search in on five stocks that appear to be particularly interesting at this time. Taking center stage at this time is ArcelorMittal (New york stock exchange: MT  ) , the 500-pound gorilla of global steel production.

I’ll begin by saying that i’m no expert if this involves metals and materials, not to mention the steel industry particularly. Kind I even consider trading inside a company like ArcelorMittal?
Understanding what I’m not sure — that’s, the dynamics from the steel industry  – could keep me from attempting to wax poetical about the subject and attempting to make any kind of forecasts that hinge on that area of the picture. However, you will find things that I know, namely:
* What it really means to become a up and down integrated, world leader with scale.
* The significance of savvy, committed leadership having a substantial possession interest.
* The signposts of solid financial performance.
* How much of an beautifully listed stock appears like.
A good investment in ArcelorMittal would require work on my small part because I’d need to get more up-to-speed with an industry that I am not thoroughly acquainted with. That’s kind of a strike against it (only “kind of” because I actually do enjoy getting my start learning on). About the switch side, the points that I have layed out above are extremely strong selling points to have an investment. So that as a large fan of returns, the situation is not hurt through the stock’s nice dividend yield climax notable the dividend continues to be slashed by half from the peak level in 2008.

By at this time, this really is greatly in contention for that top just right my buy list — presently struggling for your place with Home Depot (New york stock exchange: HD  ) , that we checked out a week ago. But no champion is going to be crowned until I have examined all five from the stocks that I have set to search into. Stay updated for individuals dispatches and my pick from the eventual champion.

Meanwhile, hopefully I have given you plenty to consider. While you digest this and search in to the amounts yourself, you need to proceed and add ArcelorMittal for your watchlist to maintain what are you doing at the organization. Do not have a watchlist? You are fortunate, you can begin one free of charge on this link.

Incoming Terms:

• dailytape com is-arcelormittal-a-good-investment

Have you seen the UEC chart lately? In March – May we started accumulating stock, see our post Uranium Is Burning Up The Markets, it’s doing more than just burning up the markets now, I’ve got a whole burning in my pocket with the amazing increases I’ve seen. Here’s what we said about Uranium and UEC:

Uranium companies are hot on our radar – Making a huge spike back into the markets – a large percentage of our Uranium is derived from foreign soil with only a small percentage in the U.S. – local companies are trying to change that. A few U.S. companies that we like:

UEC – is one of them – with a volatile market and positive news out this could be a great buying opportunity.

This proved to be a great opportunity.  And with more good news on the horizon, this just might get better: Uranium Energy Corp Commences Major Drilling Program at Salvo Project in South Texas.

And to make things hotter, check out this PR from Encompass Fund:

The Encompass Fund (ENCPX), www.encompassfund.com, a go-anywhere, open-end mutual fund that posted a 137% return in 2009*, continues to outperform this year. The fund gained 22.14% as of October 31, 2010 to rank in the top 1% in Morningstar’s World Stock Fund category out of 830 mutual funds for the year-to-date period ended October 31, 2010.

Guess who was in their top 5 holdings if you guessed UEC you’d be right.

As of Oct. 31, 2010, the fund’s top five holdings were:

• Avalon Rare Metals (AVL.TO; AVARF.PK)
• Uranium Energy Corp. (UEC)
• Delcath Systems (DCTH)
• Petrodorado Energy (PDQ.V; PTRDF.PK)
• Avion Gold Corp. (AVR.V; AVGCF.PK)

Anytime I see anything Buffett, I’m inclined to read it. In most cases, it’s a great find, other times, not so much. In this case though… it’s a good one. The Home Run Stocks Bufett Can’t Buy by Anand Chokkavelu, CFA who has a whole plethora of great articles.

How Buffett made his opportunities
Let me take you back to a time when Buffett wasn’t worth 11 figures. Back to a time when he had only five figures to work with.

In his 20s, Buffett’s eventual avalanche was just a snowball. All his name could get him was a dinner reservation … if he called ahead.

So he had to work to find deals to invest in — deals that would form the basis of his fortune. He sought out the master investors of his time, including his hero Benjamin Graham, and learned everything they would teach him.

But more than anything, he did the legwork that others weren’t willing to do. In this time before the Internet, he’d physically go to Moody’s and Standard & Poor’s to read old reports, to the Securities and Exchange Commission to read filings, and to company headquarters to talk with management.

His persistence was rewarded handsomely, particularly in tiny, underfollowed companies. In Buffett’s own words: “I would pore through volumes of businesses, and I’d find one or two … that were just ridiculously cheap.”

How cheap? In one six-year period, he grew his wealth by more than 60% a year. By age 26, he had amassed so much wealth that he considered retirement.

What goes up, must come down…. even Warren Buffett has had some loses..

How Buffett lost his opportunities
Of course, he didn’t retire. In the decades since, he’s continued putting up incredible returns, and he’s laid claim to the unofficial title of greatest investor ever.

But with all this wealth comes a problem.

That problem is exemplified by Buffett’s recent purchase of the Burlington Northern Santa Fe railroad — which he admits wasn’t a particular bargain.

The man who has absolutely throttled the market for more than five decades now says, “Reasonable return is good enough. … I mean, 50 years ago, I was looking for spectacular returns, but I can’t — I can’t get them.”

Why the surrender? One word: size.

Berkshire Hathaway is roughly the size of Wal-Mart now. Buffett’s empire has grown so large that the small multibaggers he used to stalk no longer make a dent in his portfolio’s returns.

For Buffett, analyzing and buying a small-cap stock has roughly the same cost benefit as us walking a mile to pick up a quarter. Instead, he’s stuck stalking elephants like Burlington Northern, which was roughly the size of eBay.

It’s nice to know we have one advantage over Buffett.To take advantage, we have to do the same type of work Buffett did back in his heyday — study the master investors; research the company, its competitors, and its management thoroughly; and dig into financial statements to find strong balance sheets, strong operations, and large margins of safety.

But where to start? To get a list of candidates to start you off, I screened for small companies with low levels of debt and high returns on equity (which gets at strong balance sheets and strong operations, respectively):

Company	Market Cap (in millions)	Debt/Capital	Return on Equity
Cooper Tire & Rubber (NYSE: CTB)	$1,287	47.9%	33.2%
Medifast (NYSE: MED)	$380	8.6%	31.7%
Suburban Propane Partners LP (NYSE: SPH)	$1,909	45.9%	31.3%
Cal-Maine Foods (Nasdaq: CALM)	$653	23.4%	21.5%
Bio-Reference Laboratories (Nasdaq: BRLI)	$611	22.4%	19.2%
RF Micro Devices (Nasdaq: RFMD)	$1,815	34.6%	18.8%
Smith & Wesson (Nasdaq: SWHC)	$236	32.7%	17.4%

Source: Capital IQ, a division of Standard & Poor’s.

Among the things screening can’t tell you is the quality of management, the competitive pressures the company faces, and the sustainability of earnings. After all this, the price also has to be right for that key margin-of-safety element.

Incoming Terms:

• rfmd moody\s

Anytime I see anything Buffett, I’m inclined to read it. In most cases, it’s a great find, other times, not so much. In this case though… it’s a good one. The Home Run Stocks Bufett Can’t Buy by Anand Chokkavelu, CFA who has a whole plethora of great articles.

How Buffett made his opportunities
Let me take you back to a time when Buffett wasn’t worth 11 figures. Back to a time when he had only five figures to work with.

In his 20s, Buffett’s eventual avalanche was just a snowball. All his name could get him was a dinner reservation … if he called ahead.

So he had to work to find deals to invest in — deals that would form the basis of his fortune. He sought out the master investors of his time, including his hero Benjamin Graham, and learned everything they would teach him.

But more than anything, he did the legwork that others weren’t willing to do. In this time before the Internet, he’d physically go to Moody’s and Standard & Poor’s to read old reports, to the Securities and Exchange Commission to read filings, and to company headquarters to talk with management.

His persistence was rewarded handsomely, particularly in tiny, underfollowed companies. In Buffett’s own words: “I would pore through volumes of businesses, and I’d find one or two … that were just ridiculously cheap.”

How cheap? In one six-year period, he grew his wealth by more than 60% a year. By age 26, he had amassed so much wealth that he considered retirement.

What goes up, must come down…. even Warren Buffett has had some loses..

How Buffett lost his opportunities
Of course, he didn’t retire. In the decades since, he’s continued putting up incredible returns, and he’s laid claim to the unofficial title of greatest investor ever.

But with all this wealth comes a problem.

That problem is exemplified by Buffett’s recent purchase of the Burlington Northern Santa Fe railroad — which he admits wasn’t a particular bargain.

The man who has absolutely throttled the market for more than five decades now says, “Reasonable return is good enough. … I mean, 50 years ago, I was looking for spectacular returns, but I can’t — I can’t get them.”

Why the surrender? One word: size.

Berkshire Hathaway is roughly the size of Wal-Mart now. Buffett’s empire has grown so large that the small multibaggers he used to stalk no longer make a dent in his portfolio’s returns.

For Buffett, analyzing and buying a small-cap stock has roughly the same cost benefit as us walking a mile to pick up a quarter. Instead, he’s stuck stalking elephants like Burlington Northern, which was roughly the size of eBay.

It’s nice to know we have one advantage over Buffett.To take advantage, we have to do the same type of work Buffett did back in his heyday — study the master investors; research the company, its competitors, and its management thoroughly; and dig into financial statements to find strong balance sheets, strong operations, and large margins of safety.

But where to start? To get a list of candidates to start you off, I screened for small companies with low levels of debt and high returns on equity (which gets at strong balance sheets and strong operations, respectively):

Company	Market Cap (in millions)	Debt/Capital	Return on Equity
Cooper Tire & Rubber (NYSE: CTB)	$1,287	47.90%	33.20%
Medifast (NYSE: MED)	$380	8.60%	31.70%
Suburban Propane Partners LP (NYSE: SPH)	$1,909	45.90%	31.30%
Cal-Maine Foods (Nasdaq: CALM)	$653	23.40%	21.50%
Bio-Reference Laboratories (Nasdaq: BRLI)	$611	22.40%	19.20%
RF Micro Devices (Nasdaq: RFMD)	$1,815	34.60%	18.80%
Smith & Wesson (Nasdaq: SWHC)	$236	32.70%	17.40%

Source: Capital IQ, a division of Standard & Poor’s.

Among the things screening can’t tell you is the quality of management, the competitive pressures the company faces, and the sustainability of earnings. After all this, the price also has to be right for that key margin-of-safety element.

China Architectural Engineering announced a new contract to build a resort near Shanghai causing shares to virtually double since we first featured the issue.The stock rose above $2 this morning with a bounce of almost 70%.  Things really started to pop yesterday in after hours trading when the news of the deal first broke.  The gains after hours are documented in the screen capture below and show when added to today’s the validity of our claim.