Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



4 Dogs of 2011 That Will Bounce Back in 2012

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Some companies are glad to see 2011 fading away in the rearview mirror.

Bad management decisions, overturned bandwagon plays, and investor apathy resulted in hefty share price declines last year.

Things may appear bleak, but attractive valuations and potential catalysts in 2012 will make the year ahead easier for shareholders. I took a look at a few companies that stumbled in 2011 -- but that you will ultimately forgive in 2012 -- a few weeks ago.

Let's take a closer look at some of the other 2011 losers that are positioned to come back strong this shiny new year.

Travelzoo (Nasdaq: TZOO  )
Hopping on the daily-deals bandwagon resulted in torrid gains in the latter half of 2010 for Travelzoo, but 2011 was a different story. Shares of the travel-deals publisher fell 41% last year, even though the company managed to blow past Wall Street's profit targets in three of the past four quarters.

The good thing about Travelzoo's cascading share price at a time when earnings growth has been explosive is that the dot-com travel specialist hasn't been this cheap in ages. The stock is fetching less than 15 times this new year's projected profitability.

There will be challenges. Travelzoo will have to prove that it can continue to grow its list of willing recipients hungry for its weekly Travelzoo Top 20 deals of marked-down getaway experiences. However, now that this model is truly scalable given the profitability of its European operations, the best is yet to come. (Nasdaq: SOHU  )
Being a master of all dot-com trades served Sohu well when everybody wanted in on China's miraculous growth story. Seeing Sohu's stock shed 21% of its value last year when the market got spooked by China's restrictive ways and slowing economic growth was sobering.

However, just as Travelzoo's descent was marked by a sharp ascent of its fundamentals, Sohu continues to move higher. Analysts are predicting that revenue and earnings climbed 38% and 27%, respectively, by the time Sohu posts its final 2011 tally. They see Sohu's growth decelerating to an 18% spurt in net income on a 26% uptick in revenue, but who wouldn't want to pay nine times forward earnings for a company that's a key Chinese player in online gaming, Internet portals, and search?

Limelight Networks (Nasdaq: LLNW  )
Content-delivery networks were a bad place to be in 2011, but the prospects have improved dramatically with niche leader Akamai (Nasdaq: AKAM  ) announcing plans to acquire feisty discounter Cotendo last month.

Limelight isn't profitable, but pricing pressures should ease with Akamai's move.

This is still Akamai's world that Limelight and its smaller peers are toiling away in, but after seeing its stock shed nearly half of its value -- along with Akamai's own 31% slide -- this is an important cyberspace backbone that is destined to return to favor in 2012.

Jamba (Nasdaq: JMBA  )
The parent company of Jamba Juice comes through with back-to-back quarters of profitability for the first time since going public in 2005 -- and the stock suffers a 42% haircut for all of 2011? Smoothie blenders can be so mean sometimes.

Jamba's efforts to hand off company-owned stores to eager franchisees is paying off on the bottom line, though now we head into the seasonally chilly quarters where cool smoothies aren't brisk sellers. However, analysts still see Jamba posting an annual profit for all of 2012.

It's a start.

12 months to prove me wrong
These four stocks were tossed aside by investors last year, suffering declines between 21% and 49%. If I'm calling for them to bounce back this year, in spirit of our CAPScall initiative for accountability, I'm initiating a bullish call on all four of these stocks in Motley Fool CAPS.

It's time to start thinking about what 2012 will bring, and what it means for your portfolio. You do want to beat the market this year, right? While we're at it, have you already checked out Motley Fool's top stock for 2012? The report is free -- like this article -- but it won't be around forever, so check it out now.

Motley Fool newsletter services have recommended buying shares of and Travelzoo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Travelzoo and Jamba. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1751434, ~/Articles/ArticleHandler.aspx, 5/24/2016 11:40:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 2 hours ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:00 PM
AKAM $52.70 Up +1.41 +2.75%
Akamai Technologie… CAPS Rating: ****
JMBA $11.40 Up +0.10 +0.88%
Jamba, Inc. CAPS Rating: **
LLNW $1.39 Up +0.04 +2.96%
Limelight Networks… CAPS Rating: *
SOHU $39.89 Up +0.51 +1.30% CAPS Rating: ***
TZOO $8.11 Up +0.15 +1.88%
Travelzoo CAPS Rating: **