You love buying your shirts when they go on sale. And who can resist a buy-one-get-one-free offer? So when our stocks go on sale, why do we bemoan their low prices?
Smart investors like Warren Buffett or Marty Whitman love it when their stocks are suddenly selling at bargain-basement prices. For them, these companies become no-brainer buys.
The investors who populate the Motley Fool CAPS community also like a bargain, apparently. Below, you'll find five stocks whose shares are selling at least 50% below their 52-week highs, but which still earn top honors from our investor-intelligence database. Consider it a BOGO sale on stocks.
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Stock
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CAPS Rating
(out of 5)
|
% Off 52-Week High
|
|
Actions Semiconductor (NYSE: ACTS)
|
*****
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56%
|
|
AgFeed Industries (Nasdaq: FEED)
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*****
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82%
|
|
Natus Medical (Nasdaq: BABY)
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*****
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69%
|
|
Fuqi International (Nasdaq: FUQI)
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*****
|
57%
|
|
Gastar Exploration (NYSE: GST)
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*****
|
79%
|
Naturally, we want you to look a bit closer at these stocks before buying. You can get low-priced appliances in the dent-and-ding section of your home-remodeling superstore, but their quality might not be so good. Same thing here: Make sure there's nothing seriously wrong with the company before you plug it into your portfolio.
Take two, they're small
Chinese pig feed maker AgFeed Industries has been pigging out on that country's stimulus program which has been causing increases in the price of feed. It was able to post a 61% increase in profits for 2008 while also witnessing a jump in hog production capacity. Not that investors have been living high on the hog. Despite shares quadrupling from the 52-week low reached just before the earnings release, they remain well off their highs. With cheap valuations though, investors might want to consider the bounce that AgFeed may get from the swine flu panic setting in.
There are a number of ways to potentially profit from the pandemic, but the ban some countries are starting to impose on Mexican pork imports could trigger a squeal of delight from pig farmers in other countries. China, for example, produces almost half the world's pigs, so demand could rise as people seek out alternative sources. Brazilian meatpacker Sadia (NYSE: SDA) or U.S.-based Smithfield Foods (NYSE: SFD) are others that could pick up market share if Mexico's swine flu problems worsen. Yet it's a doubled-edged sword since a spread of the virus around the world could sink shares through guilt by association. China's pig farm stocks suffered a major loss when the flu outbreak first hit.
CAPS member nibs61 believes the Chinese have a bit of a love affair going on with their swine population -- they produce some 450 million after all -- and with insiders and institutions holding large rashers of AgFeed Industries stock, it could bring home the bacon for investors.
China loves their Pigs and this company is well poied to take advantage of thier growing love of the pig. look at the institution holdings on this stock ! Its cheap now but won't be for long.
Have half a mind
It pays to start your own research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made all from a stock's CAPS page.
Sign up today for the completely free service, and tell us whether these stocks are twice as good at half the price.
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