>A Boston presenter likes Schweitzer-Mauduit (NYSE: SWM, $55.76) at this level. The company is the global leader in reconstituted tobacco products and low ignition paper. LIP is much safer than the regular product and as such is being mandated into use by regulatory authorities around the world. The European market, where LIP adoption is slowly gathering pace, is a very important growth opportunity for the company. SWM has a clean balance sheet and is on track to generate $100 million in FCF this year, following its multi-year manufacturing rationalization. Clarity over licensing arrangements for LIP in Europe and long-term demand for RTL will be the near-term catalysts.

>A New York presenter recommends a short on Lufkin Industries (NASDAQ: LUFK, $74.12). The company is a high-cost manufacturer with limited capacity to compete on price. There are a number of alternatives to its main product beam pumps, which have traditionally been the product of choice in artificial lift. Competing pumps work at a wider range of depths and are capable of handling higher volumes. There is also a growing threat from Chinese manufacturers that are able to sell the product significantly cheaper. The quality of the imported product has improved substantially as well. The presenter believes the downside can reach 20% from the current level, based on 6x his estimate for LUFK’s peak EBITDA.

>A New York presenter likes KVH Industries’ prospects (NASDAQ: KVHI, $14.26). This provider of mobile communication services for commercial ships worldwide has completed an initial buildout of its marine global network and is now able to deliver internet and mobile services for the vast majority of shipping routes. KVHI has the most compact and the easiest to install system in the space. Recurring airtime revenues are the best part of the story. KVH’s system has been installed on 1,000 ships so far, but the total market opportunity is 130,000 ships. At $2,000/month/unit, incremental earnings from airtime charges can add up very quickly. A recent new contract with Coast Guard underscores the advantages of KVH’s offering and boosts the company’s credibility.

>A New York presenter recommends Nordion (NYSE: NDE, $11.64) as a buy. This provider of medical isotopes, targeted therapies, and sterilization technologies has seen its share of the isotope market fall drastically, due to interruptions in supply from the NRU reactor in Canada. In August, the reactor resumed operation after a prolonged shutdown. NDZ has also reached an agreement with a Russian-based producer to diversify its sources. Sales in the company’s two other segments have been expanding at a rapid pace. Nordion has just announced a $0.40 dividend and a very sizable stock buyback. Resolution of the arbitration with the Canadian government expected in 2H 2011 can be a significant catalyst.

>Craig Johnson, President, Customer Growth Partners and Chair of Roulston Research Retail Group, has recently been quoted in various media outlets, discussing the outlook for some individual companies in the retail space. Please use the links below to hear his thoughts.





>A New York presenter is bullish on Palomar Medical Technologies’ prospects (NASDAQ: PMTI, $16.16). The company is seeing encouraging signs in its core business of selling skin treatment products and systems to medical practioners, but the attraction of the story is PMTI’s recent entrance into direct to consumer skin rejuvenation space. The company’s PaloVia wrinkle-reducing product started selling on QVC two months ago, and the initial results have exceeded internal expectations. Management sees the product going mainstream in the not so distant future, based on its cost, efficacy and relative ease of application. Potential upside in the $16 billion domestic skin beauty market is very significant. Depending on the number of treatments sold, incremental earnings from PaloVia can reach $1-2/share.

>Rock Tenn(NYSE: RKT, $70.68) is another name from Roulston Research’s recent New York idea forum. The Smurfit-Stone acquisition announced last month vaults the company to the #2 position in the growing containerboard space. RKT’s CEO is well-known for making successful transformative acqusitions and this latest deal could be his best. The company has historically inderpromised and overdelivered on projected synergies from acquisitions. The presenter believes this trend will be maintained here as well. Consolidation in the space has been the driver for high utilization rates and increasing pricing power. Another price increase is likely in the early spring. Should one transpire, RKT will be on course to generate $13/share in fully taxed cash flow. Based on a conservative 9 times multiple, the upside from here is close to 70%, or 30% with no price increase.