Seeking Alpha

The Manual of Ideas


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One of the favorite screening methods of contrarian investors is to search for companies whose stock prices have underperformed the broader market. In the screen presented below, we highlight stocks that have underperformed year-to-date in 2009 (through July 10th).

In order to minimize the occurrence of companies in financial distress as well as those posting large losses, we limit the screen to companies with no net debt and profitable operations (either based on the trailing twelve months or analyst estimates of the next twelve months). This narrowing of the field should result in a superior list of companies that may have been sold indiscriminately by investors, despite a strong balance sheet and decent operating results.

Click here for a PDF version of the following table.

Disclosure: Long MCF, no other positions.

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This article has 3 comments:

  •  
    We got "engaged" to VDSI a while back and totally believe this company is going to grow like a well fed teenager after all this financial garbage rots away. Financials and other industries who need to heavily rely on secure systems will at least look at presentations from VDSI. It's not a stock for the typical American TRADER, but we in Aspen are TRADERS, simply INVESTORS.
    Aspen Investment Group (The GOOD AIG)
    Jul 12 10:56 AM | Link | Reply
  •  
    being a CONTRARIAN, defined, says that person KNOWS something from tangible evidence that FUNDAMENTALLY changes the situation, and has the capability of causing a RANGE SHIFT.

    Simply being on the opposite side from the herd works, AT TREND CHANGES, no other time. Seeing your findings, FINDINGS, put you at odds with others, is acceptable, if you have evidence and the courage of your own convictions, otherwise its a potential loser.

    denaliguidesummit.blog.../

    DG


    Jul 14 03:47 PM | Link | Reply
  •  
    how can we see this ? print way too small
    Sep 02 11:18 AM | Link | Reply