In my recurring Fool column, "Get Ready for the Bounce," we search for future winners in a pile of 52-week losers. But do we really need to sit around for a whole year, waiting for a fallen stock to bounce back?

Nope. Sometimes stocks fall hard, in far less time than a year. And like a superball dropped from the balcony, the harder they fall, the higher they bounce. Today, we'll look at a few equities that've suffered dramatic drops over the past week. With a little help from the 165,000 members of Motley Fool CAPS, we hope to find an opportunity or two for you:


How Far From 52-Week High?

Recent Price

CAPS Rating
(out of 5)

Net 1 UEPS (Nasdaq: UEPS)




OmniVision Tech (Nasdaq: OVTI)




Momenta Pharma (Nasdaq: MNTA)




RINO International (Nasdaq: RINO)




UltraShort S&P500 ProShares (NYSE: SDS)




Companies are selected by screening on for abrupt 5% or greater price drops over the past week. 52-week high and recent price data provided by CAPS ratings from Motley Fool CAPS.

When good news is bad news
When the market makes a U-turn as sharp as the one we saw last week -- up more than 5% in five days from Monday's lows -- you know some investors will get burned. So it's no surprise if the bearish investors who had piled into the UltraShort S&P500 ProShares ETF are feeling like crispy critters today. But they're not alone. Mr. Market was an equal-opportunity carnivore last week, consuming bulls and bears alike.

The reasons for its bull-eating ways weren't always clear. Not a bad word was said about RINO International last week, yet while everyone else was raking in their 5% gains, RINO lost 5%. Even some stocks with positive news to report managed to somehow escape the market's rally. For instance, Momenta Pharmaceuticals won a court victory against French drugmaker sanofi-aventis (NYSE: SNY), when a federal judge refused to grant a preliminary injunction against a generic anticlotting agent Momenta has developed. OmniVision issued an earnings report that -- according to fellow Fool Rick Munarriz, at least -- "blew away" analyst expectations. It needn't have bothered. Investors sold the stock off by 5% anyway.

Likewise with this week's featured stock: four-star-rated Net 1 UEPS. In a press release issued Thursday, the alternative payments company announced a partnership with an unidentified (but rumored to be MetroPCS (NYSE: PCS)) "top five U.S. wireless carrier." In cooperation with its mysterious compadre, Net 1 aims to convert Americans' smartphones into "virtual" debit cards -- lightening our wallets by one piece of plastic, even as the company fills its own pockets with service fees (further lightening our wallets). That seems like positive news -- plus, as you're about to find out, it helps to further Net 1's international ambitions.

The bull case for Net 1 UEPS
In case you've never heard of Net 1, I'll let CAPS All-Star Seansonfire start with some introductions:

Net 1 Ueps Technologies ... is a technology/banking company that operates an electronic payment system for developing nations. Basically they make banking and transactions availible to the Underbanked people of the world ... the vast majority of the world (about 2/3 of the worlds population). The product works alot like a debit card but the fees are smaller, and there is the ability to for it to "work offline", meaning the terminal you use doesn't need a constant connection to the Internet. ... It basically replaces cash by attaching your name/account to a card for which you basically use for all types of banking transactions.

Fellow All-Star Clint35 calls this "a niche market that is ignored by big banks." But if so, it's a niche "with potential."

CAPS member umps15 notes that Net 1 isn't just in South Africa, but is also "making headways into other countries as well. They've been showing good revenue growth, and balance sheet looks good."

Cash + growth = profits
A "good" balance sheet? I'll say. Net 1's war chest is filled to the brim with $150 million in net cash, enough to back up fully 28% of the firm's market cap with cold, hard cash. But even if this "value cushion" weren't present, the company's performance would make the stock a clear-cut favorite for growth investors.

Selling for a mere 14 times earnings, Net 1's projected long-term growth rate of 15% is already more than enough to make the stock attractive. But the truth is actually even better than that. With trailing-12-month free cash flow of $66 million, Net 1 is actually 69% more "cash-profitable" than its GAAP earnings numbers suggest. You can argue the stock actually sells for only eight times its free cash flow.

Foolish takeaway
On a 15% grower, that's awful cheap, Fools. On a 15% grower that also has $150 million in cash in the bank, and just invaded a new market that could accelerate its earnings growth, it's enough to make Net 1 No. 1 in my book.

But that's just my opinion. Here at the Fool, we welcome contrary views. If you've got a bone to pick with Net 1 UEPS, here's your chance to tell the world about it. Click over to Motley Fool CAPS, and sound off.