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 110,000-plus investors participating in Motley Fool CAPS to see what the community is saying about stocks hitting 52-week lows yesterday. The community's approval (signified by four- and five-star ratings) could indicate that further research is in order.
Here are three such stocks:
| Company |
Yesterday’s Low |
Industry |
CAPS Rating (out of 5) |
Fools Saying Outperform |
|---|---|---|---|---|
|
Aracruz Celulose S.A. (ADR) |
$56.19 |
Paper & Paper Products |
|
228 of 240 |
|
CryptoLogic Limited (USA) |
$8.75 |
Business Software & Services |
|
1407 of 1464 |
|
China Techfaith Wireless Comm. Tech. Ltd |
$1.51 |
Diversified Communication Services |
|
213 of 244 |
Source: Motley Fool CAPS, as of Aug. 25, 2008.
Five-star paper & paper products companies:
-
Votorantim Celulose e Papel S.A (ADR)
(NYSE:VCP) : Stock price has fallen 3% since last year. -
Kadant, Inc.
(NYSE:KAI) : Stock price has fallen 14% since last year.
Five-star business software & services companies:
-
Ebix, Inc.
(NASDAQ:EBIX) : Stock price is 109% higher than last year. -
NAVTEQ Corp
(NYSE:NVT) : Stock price is 72% higher than last year.
Join us on CAPS to learn more about these and countless other interesting stock ideas.
