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:


Yesterday’s Low


CAPS Rating (out of 5)

Fools Saying Outperform

Aracruz Celulose S.A. (ADR) (NYSE:ARA)


Paper & Paper Products

4 Stars

228 of 240

CryptoLogic Limited (USA) (NASDAQ:CRYP)


Business Software & Services

4 Stars

1407 of 1464

China Techfaith Wireless Comm. Tech. Ltd (NASDAQ:CNTF)


Diversified Communication Services

2 Stars

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.

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.