When a stock hits a fresh low, it can either signal a dirt cheap dream stock or a dreadful stock to avoid. Separating the wheat from the chaff is difficult, but finding well-run companies at bargain-basement prices is a great way to accumulate a fortune over the long run.

With that in mind, we'll use the aggregate intelligence of the 115,000-plus investors participating in Motley Fool CAPS to see what the community is saying about stocks hitting 52-week lows today. The community's approval (signified by four- and five-star ratings) could indicate that further research is in order.

Here are three such stocks:


Today’s Low


CAPS Rating (out of 5)

Fools Saying Outperform

BT Group plc (ADR) (NYSE:BT)


Telecom Services - Foreign

3 Stars

102 of 113

iStar Financial, Inc. (NYSE:SFI)


Credit Services

3 Stars

224 of 248

Tongjitang Chinese Medicines Co. (ADR) (NYSE:TCM)



4 Stars

270 of 284

Source: Motley Fool CAPS, as of Aug. 21, 2008.

Five-star telecom services - foreign companies:

  • Brasil Telecom Part. S.A. (ADR) (NYSE:BRP): Stock price is 23% higher than last year.
  • Tele Norte Leste Participacoes SA (ADR) (NYSE:TNE): Stock price is 20% higher than last year.

Join us on CAPS to learn more about these and countless other interesting stock ideas.

Disclosure is important to us here at The Motley Fool. The stocks mentioned in this article received "five-star" ratings from participants in The Motley Fool's CAPS service and are showing strong percentage gains in today's market, at least compared with other CAPS five-star stocks. No individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated by identifying the stocks loved both by the CAPS community and by buyers in today’s market, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio), have positions in these stocks. We thought you'd like to know that. You can learn more about The Motley Fool’s disclosure policy here.