3 Stocks Near 52-Week Lows Worth Buyinghttp://www.fool.com/investing/general/2013/04/16/3-stocks-near-52-week-lows-worth-buying-28.aspx Sean Williams
April 16, 2013
Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.
Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.
One lustrous investment
If you recall, when I statistically assessed gold miners in January on the basis of valuation, production, and debt, Goldcorp and Yamana Gold (NYSE: AUY) were the only true standouts. Both Yamana and Goldcorp benefit from the mining of byproduct metals in their mines that they can then sell to offset the cost of their operations. What gave Yamana the ultimate edge -- and led to my declaration of it being the best gold miner, statistically speaking -- was its growing production compared to Goldcorp's flat year-over-year production.
However, Goldcorp has a rich history of maintaining low production costs and improving its operating efficiency. Its flagship Penasquito mine, which opened in 2010, has seen gold production improve from 168,200 ounces in 2010 to 411,300 ounces in 2012 as ore grade nearly doubled from 0.27 g/t to 0.50 g/t. Barring a 60% haircut in the price of spot gold, Goldcorp is going to continue to deliver top-notch margins and a healthy 2% yield.
Optimize your buying
In ClickSoftware's fourth-quarter report, the company delivered 18% software licensing growth and $1 million more in net income than the year-ago period. However, a drop-off in net income for the full-year attributable to the addition of more than 100 new employees and big cloud-computing R&D investments pummeled the previous highflier. However, short-sighted traders are going to be in for a surprise when ClickSoftware turns in top-line growth of 20% to 25% according to management's own expectations in fiscal 2013. Management went on to note that 80% of its new customers in the fourth quarter purchased its mobile solutions, solidifying its transition from PCs into mobile and cloud platforms.
Furthermore, ClickSoftware is well funded and able to expand its workforce and fund R&D without the need for debt. In fact, it ended the year with $59.4 million in cash and investments and no debt. ClickSoftware also pays out a premium dividend in the tech sector, making it an excellent income and growth play.
Give this company the "Royal" treatment
But, over the long run, I feel Royal Dutch Shell could make for a very intriguing and safe integrated oil play. One reason is the incredible energy and geographic diversification you get by investing in Shell. Sh