Picks for 2008

Rofin-Sinar Technologies (NASDAQ: RSTI) is a speculative pick.

Rofin-Sinar is a cross between an old line manufacturer and a high-tech 'new economy' company. It manufactures lasers used by other manufacturers to weld, cut, and mark various materials.

Rofin has been in business for 30 years and is a world leader in industrial laser technology. Growth has been steady and significant over the last five years. Earnings have increased an average of 52% a year for five years and justify the above average P/E ratio of 26.5.

RSTI pays no dividend and has volatility over twice the average for listed companies, but this is a strong business.

Sadia S.A. (NYSE: SDA), a more conservative idea, is a Brazilian food producer with operations in Brazil, Argentina, Chile, Uruguay, Paraguay, and Bolivia. It is one of the largest food companies in the region. Half of its sales come from outside of South America, with Asia and the Middle East particularly large buyers.

For the nine months ended September 30 2007, Sadia's total revenues jumped 25%. Net income soared even more, up 156%. Trading a very conservative 12.57 times earnings Sadia's share price could easily double in 2008.