Although share price can’t tell you everything, if anything about a stock's health, sometimes it’s a good place to start looking. Below are three stocks whose share price has been killed during the recent bear market. Even though some of these names have experienced considerable run-ups recently, they are still largely under their 52-week highs. Here is a quick analysis on some potential investments.
TBS International (TBSI), Shipping:
Recent Price: $11
52 Week Range: $3.40 - $49.71
Trading at .56 book value, this specialty shipper could see a dramatic rebound once the market sniffs a return. TBS operates specially built, custom ships to carry hard to carry loads. Their niche market should provide them some comfort to maintain clients and attain future growth. Their balance sheet is one of the best in the shipping industry (hard to find these days) and their management seems very honest (listen to the earnings calls). Overall, TBS should not only survive, but thrive once the market returns.
US Steel (X), Industrial Goods
Recent Price: $36
52 Week Range: $16.66 - $196.00
Another stock trading at below book value (.96), US Steel has been beaten down badly. Although they have had a large run-up recently (I suggest waiting for a $10 pullback) they are still considerably cheap. This extremely cyclical stock should see tough days in the near-term, but for patient investors, I think this could be a winner. Still paying a dividend, long-term investors should not only be able to reinvest those, but also reap the benefits once payouts are increased. Just be smart about selling it during the next bull market.
Allied Irish Banks (AIB), Financial
Recent Price: $4
52 Week Range: $0.72 - $40.29
This stock should only be approached by investors who have studied the industry and have kept up with recent Irish government moves. Almost every multiple is extremely low right now, but that does not take into consideration to extreme dilution equity holders will have due to the Irish bailouts, including a possible nationalization. I believe nationalization will not occur (that opinion being backed up by the Irish government) and that the financial sector in Europe will eventually return. For long-term investors willing to allocate a small amount of their portfolio toward a speculative stock, this could be the one.
Disclosure: no positions