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Hidden Stocks for High Returns

Head in the clouds With the rise of virtualization and the growth of cloud computing, memory density and server performance have become key issues for data centers. Bottlenecks develop as memory module capacity can't keep pace with demand from servers using more multi-core CPUs and become increasingly virtualized. That's where Inphi comes in. Its load-reduced, dual-inline memory modules -- LRDIMMs -- offer four times the memory capacity and near double the bandwidth, giving both capacity and speed a boost during using the same amount of space on the motherboard.

It now has new management at the helm and recorded a sequential increase in revenue in the first quarter, albeit all in all being substantially below last year's effort, and is looking for another 5% to 10% sequential gain in the second.

Tastes great, less filling Slicing up its business into narrower slivers is making Marathon Petroleum a more specialized operation, and although the refining industry operates on narrow margins, making the stock a dicey investment in the current environment, at less than six times revenues estimates it is a cheap stock. With a dividend of $1 a share that yields nearly 3%, it's not a haphazard investment.

Spun off from Marathon Oil a year ago, the refiner is looking to capitalize on the renewed interest in pipelines by spinning off its own midstream assets. We've seen a lot of industry players looking to reap the rewards of value held in pipeline business, as Sunoco is being bought by Energy Transfer Partners for its East Coast network of transmission lines, Kinder Morgan is buying El Paso, and ConocoPhillips spun off its midstream and chemical assets into Phillips 66. The refinery industry has seen profits squeezed as demand for gasoline and other petroleum products has declined, down more 10% over the past five years, according to the U.S. Energy Information Administration, as crude prices have risen.

More information: Dailyfinance