Three Stocks Way Below 52-Week Highs

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

Comments

[MJJP:]

I too shared your opinion of not only AIB but IRE as well and bought both. However the issue of nationalizing was continuing to rear its ugly head and I sold all my positions. To me this was not a matter of necessity but rather a personal position of those calling the shots from now on. Looking at IRE now in the 8 to 10 dollar range I am heartbroken as I bought this at .75 and sold at 4. Going forward I am still waiting to see whats in store for Irelands economy.
As for shipping this is another favorite sector for me and I hold several . Knowing what I know now I am waiting for the market to rise up a little more and take what little profit I might have and sit on the sidelines. I am not a trader and was looking long term in both sectors but what I have experienced with the shippers I own cutting dividedends, diluting shares and bashing shareholders it would be hard for me to put more money into any of them. In fact there is much more pain to come in the shipping industry as I just read that their has not been one new order this year for a containership. China is ready to set sail on this industry as well and is buying as many used vessels as well. If China does to shipping what it has done to every other industry then most of these shippers will have to find other work.

Jun 03 06:31 AM

[buyforeclos...:]

Lol X is one manipulated stock target was 16 last I heard and here is at 35 after cutting divy and secondary at 25

Jun 04 09:34 AM

[buyforeclos...:]

Lol X is one manipulated stock target was 16 last I heard and here is at 35 after cutting divy and secondary at 25

Jun 04 09:36 AM