Needless to say, AAR is a deeply undervalued stock, even accounting for a slowdown in its business.

I re-recommended purchase of AAR’s shares last week at $11.75 each, and while the stock has shot up to $16.00, I still feel that it is undervalued, but not by qite as much as I did before.

Don’t take my word for it, do your own due diligence and pay special attention to how low AAR is trading compared to its book value, tangible book value, and the recent insider buying.

If you’ve got new money to invest, AAR is my #1-B choice for new money right now.

#3: uWink, Inc.:  Strong Buy

uWink Inc. (Nasdaq: UWKI.OB): uWink, Inc. is an entertainment and hospitality software development company that develops casual, interactive, social games, in addition to licensing the rights to those games and their proprietary touch-screen ordering and gaming interface to restaurants, entertainment venues and the hospitality industry.

uWink also owns and operates three restaurants under the uWink brand name that utilize this technology.

The company’s CEO is Nolan Bushnell, the founder of Atari Inc. (OTC: ATAR.PK) and Chuck E. Cheese (NYSE: CEC), and what uWink is doing with their proprietary software should lead them to a huge market in a few year’s time.

uWink just announced a big deal to test out their touch screen terminals in a Chili’s Too Margarita Bar owned and operated by Delaware North, a global hospitality, food service and retail provider, at the Fort Lauderdale Hollywood International airport.

What is significant about this deal is what it portends for uWink, especially in light of the fact that if this pilot program goes well, you might be seeing these terminals in not only more Chili’s restaurants owned by Brinker International (NYSE: EAT), but also other restaurants and businesses within the hospitality industry that are also owned and operated by Delaware North, and other companies.

You can read all about this breakthrough deal here.

Finally, uWink also just completed their installation of 100 terminals at a retirement community showing the expansive scope of the possible uses for their budding technology.

uWink is just scraping the surface of their potential.

If you’ve got new money to invest, uWink is my #1-C choice and is only a few notches below the other two stocks because of its risky nature, and penny stock status.

#4: eHealth, Inc.: Buy

eHealth, Inc. (NASDAQ: EHTH) offers Internet-based insurance agency services to individuals, families, and small businesses primarily in the United States. The company’s e-commerce platform, which is accessed directly via ehealth.com and ehealthinsurance.com, enable individuals and families to research, analyze, compare, and purchase health insurance products online.

For anyone that is self-employed, runs a small business, or as more and more companies stop paying for employee health insurance, needs to purchase their own health insurance, it is becoming increasingly crucial that individuals find affordable health insurance and eHealth gives them the power of choice.

eHealth just reported solid earnings this week, and reaffirmed their guidance for the remainder of 2008, which says a lot since they were already 1 month into their final quarter and had great visibility into their current business trends, and the affects of the slowing economy on their business.

I will be coming out with a full analysis and breakdown of eHealth’s latest quarter shortly, but in the mean time, if you don’t own any shares, you should consider picking a small position here, and adding more on any weakness.

#5: Rick’s Cabaret International, Inc.: Buy

Rick’s Cabaret International, Inc.