The market often gives us great investment opportunities, but only in uncertain times. Below is a list of seven companies, which have seen a massive decline their share prices. The selloff may be overdone on these companies.
Hewlett-Packard Company (HPQ) offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide.
HP has been all over the news lately with its change of CEO in less than a year. The company has lost its sense of direction and still is unsure about plans to spinoff its PC division. The stock is down 46% YTD. The stock has a forward P/E of 4.6 and pays a 2% dividend.
Citigroup, Inc., (C) a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services.
The entire financial sector has been taking a drag because of Europe. Citigroup is still profitable and its exposure to Europe is not as much as the market is thinking. The stock is down 47% YTD. The stock has a forward P/E of 5.
Freeport-McMoRan Copper & Gold Inc. (FCX) engages in the exploration, mining, and production of mineral resources.
Freeport has been falling because of copper prices. The company is still set to be profitable and still has exposure to the gold market. The stock is down $45 YTD. The stock has a forward P/E of 5.3.
The Goldman Sachs Group, Inc., (GS) together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide.
Goldman is under scrutiny from the government. The company's illegal activities has backfired on them. Political uncertainty has caused the stock to fall substantially. The stock is down 43% YTD. The stock has a forward P/E of 6 and pays a 1.5% dividend.
The Dow Chemical Company (DOW) manufactures and supplies products used as raw materials in the production of customer products and services worldwide.
Dow has been a victim of the overall market. The company does business everywhere so the situation in Europe has not been of much help. However, the company is still very profitable and its chemical segment is still going strong. The stock is down 30% YTD. The stock has a forward P/E of 7 and pays a nice 4.25% dividend.
Ford Motor Company (F) primarily develops, manufactures, distributes, and services vehicles and parts worldwide.
Ford has been taking a hit as many are concerned with a potential slowdown in auto sales. Regardless, Ford has been taking market share and seeing strong sales growth. The stock is down 41% YTD. The stock has a forward P/E of 5.48.
Bank of America Corporation, (BAC) a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally.
This financial behemoth is taking beating after beating. The company has many problems arising from liquidity issues to lawsuits. Countrywide is also taking a toll on the company's profitability. The selloff may be overdone though and management has cited that liquidity concerns are overblown. The stock is down 52% YTD. The stock has a forward P/E of 5.
Sometimes bad companies are priced as terrible companies. We should take advantage of these opportunities. I recommend you do some more research into these companies if you have any intention of purchasing their securities.
Disclosure: I am long F.