Every week, I save the smallest, most risky, most speculative stocks for Friday...

Now, we save the most speculative stocks until the end of the week to protect you from yourself... You see, it steams me whenever I see anyone bid up (i.e., make the price go up unusually) these small-cap stocks after-hours...

But, now that we've reached Friday, I've got a decidedly unsexy-looking, "new tech" speculative play for you that you will do the homework on this weekend... It's too late... Even if you wanted to, you can't buy it after-market...

The stock is Sun Hydraulics Corp. (SNHY)...

It's up huge today, so I need you to wait for a pullback, okay... if you decide to buy it. Otherwise, you're even crazier than I am...

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What does this company do?...

It makes screw-in cartridge valves and manifolds... This is, in reality, a smokin' business... Remember, the companies that are winning now are companies that make cartridge valves... that control the speed motion of fluids within a hydraulic system, and the manifolds where you put the cartridges.

As anyone who watches this show knows, fluids control as a business has been about the hottest business, other than natural gas, this year... so you should go look at Flowserve Corp. (FLS)... It was up 5 points today... Or Robbins & Myers Inc. (RBN), another great fluid management play, up $1.25 today... And look at that Colfax (CFX)... Remember that one?  That's another fluid management stock that I recommended. It's up 16% since May 12th... We have fluid control cred(entials) on this show, and we're using it to back SNHY...

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You cannot operate big machinery without hydraulic valves. And this country makes some of the best and most efficient ones... which makes SNHY a "new tech" necessity. Their valves do not make it so you sell more or better customer retention... These things are in oil platforms, ag equipment, mining equipment, construction vehicles, cranes... This is all the stuff that's being bid up all around the world.

We like SNHY, because it seems to have designed a better valve... Yeah, pure and simple... a "making a better mousetrap" play...

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Cartridge valves - the kind SNHY makes - are lighter, more flexible, more efficient than older competing cast-iron valves their replacing... These guy's have it...

That's why cartridge valves are growing at twice the pace of the overall valve market, and it's why SNHY can charge a 15-30% premium for its valves over the competition.

SNHY is also working to make integrated valve systems that are electronically-controlled. This is what their customers in the machinery business want, and SNHY has partnered with two companies... White Oak Controls and High Country Technologies to deliver it...

Do you know that electronic controls from White Oak are integrated into some of SNHY's valves, making them easier to control... Energy saving... and SNHY has made an equity investment in its other partner, High Country, which is why I mentioned it. That makes master controllers for hydraulic valves. A hidden value there.

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SNHY is split 50/50 between U.S. and International... 60% of the companies sales are exported, which you know we like, because it's a weak dollar play... It also means you have to pay attention to the exchange rate, if you own this stock... because our marvelously-difficult government has started clamoring about strengthening the dollar, and the dollar did have its best showing in a long time this week... so that could hurt the stock if it keeps going up.

Remember, this is Speculative Friday... SNHY could also be a great potential takeout (i.e., acquisition target) for any company looking to beef up its fluid management exposures... with better valves, because SNHY has a decent market share of 17% of a billion-dollar market for higher-end valves.

The company has what we like in a speculative stock... It's under-covered... three analysts cover it. A clean balance sheet, $23 million in cash... just a little bit of debt...

SNHY is trading at 17.5x forward earnings, with 23.5% long-term growth, so it's cheap...

I think this about $38 stock has the potential to go to $48, just on the strength of its growth... $10 bucks, okay... not to mention its "new tech" valve innovations.

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