As I have noted in previous articles, when looking for a company to buy, I try to find some of the following characteristics:
- A stock that has fallen out of favor with investors
- A stock that has a major catalyst on the horizon
- A company that has signaled that they are close to a bottom in their business
- A compelling valuation
- A stock that is supported by assets that create a "floor" on the stock
- Insider Buying
ZipRealty (ZIPR) is a company that meets 5 of the 6 criteria listed above. The stock has fallen out of favor over the last several years as performance declined during the recession. The company has completed a major restructuring and recently...