Credit card issuer Metris Companies (MXT) continue to be a stellar performer in 2004. Shares of the once financially troubled firm have tripled this year from $4 to $12, greatly contributing to Peridot Capital's success year-to-date. The stock pulled back to $10 after an analyst downgraded the stock, citing full valuation.

However, the shares have moved back toward the old highs as news of early debt repayment and refinancing of existing debts hit the wires. In addition to the strong operational turnaround orchestrated thus far, any interest expense reductions the company is able to secure, based on the improving performance of its loan portfolio, will serve as yet another catalyst for incremental earnings gains going forward.

With some analysts still bearish on the company's future, combined with a staggering 24% of the float sold short, there are many reasons to think that Metris shares will continue their march higher in 2005. Contrary to popular belief, it's not too late to get in, even at the current $11 price tag.