The CAPS Screen: Stay Away From These 10 Financial Time Bombs
Sift through the wreckage of beaten-down companies and you'll likely find a few wonderful stocks. Lately, the stock market has blessed patient investors with plenty of thrashed financial companies.
But the savviest investors know that willy-nilly contrarianism isn't a sure path to riches. Often, companies get punished for all the right reasons. And in those cases, it can be so much worse than you think.
With that in mind, I used our new Motley Fool CAPS screening tool to find beaten-down financial stocks the online CAPS community loves to hate. These are the stocks CAPS players avoid like the plague.
They are also:
- Capitalized at more than $200 million.
- Down at least 25% over the past year
-
Rated one star, the lowest possible, by our CAPS community.
Remember, in the first year for which we have data, one-star companies flamed out with an average loss of nearly 17%.
|
Company
|
Share Price
|
Market Cap
|
|
Alesco Financial
|
$3.45
|
$205 million
|
|
Ambac (NYSE: ABK)
|
$4.63
|
$1.3 billion
|
|
Capital One (NYSE: COF)
|
$53.00
|
$19.9 billion
|
|
Downey
Financial
|
$14.14
|
$394 million
|
|
Fannie Mae (NYSE: FNM)
|
$28.30
|
$27.7 billion
|
|
Freddie Mac
|
$24.91
|
$16.1 billion
|
|
IndyMac (NYSE: IMB)
|
$3.25
|
$263 million
|
|
Lehman Brothers (NYSE: LEH)
|
$44.24
|
$24.5 billion
|
|
National City (NYSE: NCC)
|
$6.30
|
$4.0 billion
|
|
UBS (NYSE: UBS)
|
$33.59
|
$64.3 billion
|
Data from Motley Fool CAPS and Yahoo! Finance as of April 30.
Are these companies poised for a turnaround? Or is the pain just beginning? Come and join us at CAPS to let us know what you think. Our 100,000-strong (and counting) CAPS community wants to hear your opinion.
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