While pinpointing buyout candidates may seem chancy, the way Mr. LaLoggia does it is fairly conservative.

They generate a lot of cash, so they make great buyout candidates, and you can get them at reasonable prices, because everyone else is focused on buying shares of Google.

Federal Paper Board, which is based in Montvale, N.J., has been rumored to be a buyout candidate for years, securities analysts said.

So it's an ideal buyout candidate.

An analyst at Merrill Lynch recently named Avaya as an ideal buyout candidate, citing its cash flow, lack of debt and rising profit margins.

The company has been discussed as a possible buyout candidate, particularly since recent changes in Federal banking regulations eliminated protection from out-of-state suitors for Missouri banks.

In a research report, a Credit Suisse analyst, Gary Balter, wrote that the chain was one of the "best positioned" buyout candidates among the companies he tracks.

But its financial health has rebounded so strongly that a Merrill Lynch analyst recently described Avaya as an ideal buyout candidate.

John Kilduff, an analyst at Fimat USA, cited Murphy Oil as a potential buyout candidate.

The worldwide advertising giant has been a rumored takeover or leveraged buyout candidate.