Have we Hit Bottom Yet?
8 March 2008Have we hit bottom yet? Probably not. I haven’t felt or seen the panic that comes with a market bottom/turning point. Besides, they usually occur at or near options expiration Friday (actually, the Monday after) and or options expiration at the end of a quarter.
If you have been holding some long positions the whole time during a downtrend, the bottom will occur as you sell the last stock in your portfolio. It will occur when you wish you had never bought that stupid company or even spent one dime on stocks.
Hopefully you have already lightened your portfolio of stocks and bulked up on some cash and are waiting for the big shopping day when one or more of the volatility indices spikes big time to signal the panic bottom. But what are you going to buy? By that point almost all stocks have been broken in one way or another.
The stocks you need to buy are the ones making new highs or are the top stocks in the leading industry groups. Or they could just be ordinary companies that have been beaten down by a long market downtrend. These are undervalued stocks. Stocks that have been oversold to the point they are a screaming buy, just waiting for the money to come off the sidelines. Those are the stocks I list below. These stocks just look undervalued, at least at the time they reported earnings.
Now you need to sort through the list, looking for the gems that still have a good story, a great product or a great service and look for the turning point when the money starts flowing back into their undervalued stock. Simple, right?
RRI - Reliant Energy, Inc. - 2/27/2008 - $24.50
DR - Darwin Professional Underwriters, Inc. - 2/28/2008 - $23.27
FLS - Flowserve Corporation - 2/28/2008 - $102.50
IHR - Interstate Hotels & Resorts, Inc. - 2/28/2008 - $4.83
TVL - LIN TV CORP - 2/28/2008 - $10.99
MGA - Magna International Inc. - 2/28/2008 - $80.06
NIHD - NII Holdings Inc - 2/28/2008 - $40.66
AVCI - Avici Systems Inc. - 2/29/2008 - $7.87
BIDZ - Bidz.com, Inc. - 2/29/2008 - $10.79
CHC - CHARTERMAC - 2/29/2008 - $5.20
DECK - Deckers Outdoor Corporation - 2/29/2008 - $126.50
DLM - Del Monte Foods Co. - 2/29/2008 - $8.51
ESL - Esterline Technologies Corporation - 2/29/2008 - $48.14
FLR - Fluor Corporation - 2/29/2008 - $142.50
HURC - Hurco Companies, Inc. - 2/29/2008 - $48.15
KG - King Pharmaceuticals Inc. - 2/29/2008 - $11.12
LOOK - LookSmart, Ltd. - 2/29/2008 - $3.48
MTZ - MasTec, Inc. - 2/29/2008 - $8.55
MRX - Medicis Pharmaceutical Corp. - 2/29/2008 - $21.50
ULBI - Ultralife Batteries, Inc. - 2/29/2008 - $14.07
URI - United Rentals, Inc. - 2/29/2008 - $18.97
VIAB - Viacom Inc. - 2/29/2008 - $41.30
INT - World Fuel Services Corporation - 2/29/2008 - $26.75
gca - Global Cash Access Holdings, Inc. - 2/29/2008 - $5.52
s - Sprint Corporation - 2/29/2008 - $8.09
MYE - Myers Industries, Inc. - 3/3/2008 - $12.17
CCRN - Cross Country Healthcare, Inc. - 3/4/2008 - $11
OMPI - Obagi Medical Products, Inc. - 3/4/2008 - $14.83
SUPG - SuperGen, Inc. - 3/4/2008 - $2.57
PRFT - Perficient, Inc. - 3/5/2008 - $7.17
CMTL - Comtech Telecommunications Corp. - 3/6/2008 - $42.74
DXPE - DXP Enterprises, Inc. - 3/6/2008 - $36.77
SGLP - SemGroup Energy Partners, L.P. - 3/7/2008 - $25.25
cmn - Cantel Medical Corp. - 3/7/2008 - $9.75
SUAI - Specialty Underwriters’ Alliance, Inc. - 3/10/2008 - $4.65
I recently saw where Jon Najarian thought S - Sprint Nextel Corp. looked undervalued too! I think it looks like a $16-$20 stock, and at it’s current $7.01 could be a takeover target not unlike Yahoo! was. What do you think? Got any good undervalued stocks to share?
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