A brief comment on the Jacobs Engineering Conference Call implies some positives for Graham (GHM).

Do Vonage (VG) shares, currently sitting at all-time lows, offer a good risk/reward?

This morning Lufkin (LUFK) reported outstanding third quarter results and a growing backlog. Additionally, the company’s balance sheet remains pristine, with $110 million in cash and no debt. Despite the positives, the stock tanked, amidst continued deterioration of the equity markets, and extreme bearishness in energy-related equities as the stocks appear to be pricing in sub-$50 oil.

Bel-Fuse, a competitor of Power-One (PWER), and a major shareholder, recently upped it’s stake in PWER at share prices of around $1.30 per share.

Yesterday, the US Senate voted Tuesday to extend solar tax credits for the next eight years. The news is positive for the following alternative energy stocks, I have covered here: PWER, NX, and ATA.TO.

Despite significant exposure to the US residential real estate market, I believe that Quanex (NYSE: NX), a recent spin-off, has solid appreciation potential over the next few years. My optimism is based on the following two factors: the company’s growing presence in the thin film solar market, and a pristine balance sheet ($50 million in net cash, $2 million in debt, and $20 million in cash pending receipt), which should allow NX to pursue highly accretive acquisitions in the current weak operating environment. In addition, the stock’s low valuation, already appears to reflect the well-known problems in US residential real estate. As such, a slight sentiment change in the macro environment, combined with a growing recognition of NX’s solar and other green growth opportunities, could lift the shares.

Like many stocks in recent weeks, Lufkin (LUFK) has sure been a roller coaster. After recommending the stock back in July at about $78, the stock soared after an exceptional earnings report, only to completely collapse over the last week or so in the broader oil/commodity sell-off. Given sharp share price drop, I thought it might pay to take a step back and run an earnings stress test on LUFK assuming oil prices continue to decline dramatically. Interesting, this type of stress test can be done for many other oilfield service shares, in order to determine potential downside in the event that oil prices do not stabilize (an unlikely scenario in my opinion).

With the stock market in another big swoon, I thought it would pay to review one classic method of making money in stocks. Hopefully, this post will help us fight the emotion of fear which grips all investors during major corrections, of which we’ve had tons in the last year or so.