When I wrote last week that cocaine prices rose at a faster rate than the Dow Jones industrial average, I overlooked something: methamphetamine may be an even better "investment" than cocaine, when compared with the index. Marijuana isn't doing too shabby either.

According to data on the DEA's website, the average price per pure gram of all domestic methamphetamine soared 37% between January and June 2007, beating the 24% gain in cocaine, and eclipsing the broad market index, which rose about 7% during that same time.

I wasn't able to find comparable data for marijuana but did come across an interesting story from Bloomberg News saying that prices for marijuana in Holland have soared 20% because of an increase in police raids. So any college students planning a trip to Europe should take note. U.S. pot prices have climbed over the last few years, according to the folks at High Times. I'll update this post if I get more information.

Does this mean that people should dump their Google (NASDAQ: GOOG) shares and set up a crystal meth lab or start growing weed? Of course not.

As Mr. Mackey from South Park says, "Drugs are bad." They're bad for your health and bad for society. People should just say no to drugs, but they don't and that's the problem. Prohibition didn't stop people from drinking in the '20s, and isn't stopping people from getting high today. My argument is that if we decriminalize drugs, the government can tax them and use that money to treat addicts.

Legalization is no utopia, but given the failure of the War on Drugs, it seems like it's worth a try.

Much of the wizardry behind the amazing array of available consumer electronic devices is a function of the high-tech thinking and precision manufacturing procedures used to create the smallest components. A leader in the art of fabricating those components is headquartered in Chicago, Illinois.

Methode Electronics (NASDAQ: METH) designs, manufactures and markets devices employing electrical, electronic, wireless, sensing and optical technologies. Its various components and subsystems are used by manufacturers of automobiles, computers, voice/data systems, aircraft, industrial equipment and medical devices. The firm also provides electrical, environmental and industrial testing services. Methode works through facilities in North America, Europe and Asia.

The company surprised the Street last week when it reported fiscal Q3 EPS of 18 cents and revenues of $105.4 million. Analysts had been looking for 9 cents and $100.9 million. Management also guided FY07 EPS to 52-61 cents (47 cent consensus) and FY07 revenues to $430-$440 million ($424.86M consensus). The CEO cited solid business growth in power distribution, fiber-optic, and Europe/Asia automotive products for the favorable figures. He also noted that both of Methode's Chinese businesses are now turning profits. The METH price popped through moving average resistance on the news and has since been defining a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy" and two "holds." Analysts see a thirty percent growth rate through the next year. The stock's Price to Sales ratio (1.10), Price to Book ratio (1.53), Price to Cash Flow ratio (11.87), Price to Free Cash Flow ratio (29.89) and EPS Growth rate (125.00%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 91% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $7.07 and $13.43. A stop-loss of $10.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.