Daily Screen: Five Stocks in the Sweet Spot

Includes: EXM, NOVA, PRSG, TKC
by: Ockham Research

Today for our daily screen we are pointing our stocks that are both Greatly Undervalued and also receive a bullish 5-star rating from the Motley Fool CAPS. As our readers are aware, in order to receive our Greatly Undervalued rating, a stock must be trading well below its historically normal valuations of price-to-cash earnings and price-to-sales as well. This condition normally happens when a stock falls out of favor with the market, so it is rare to find a stock that meets these criteria and yet is also loved by ‘the crowd”. We have found Motley Fool CAPS to be the best available gauge of crowd sentiment on individual stocks, and interestingly each of these Greatly Undervalued stocks is also a crowd favorite as well.


Out the 8046 stocks that we cover, only 5 matched this specific criteria. Interestingly, out of this small subset of our coverage universe the two largest stocks are international telecom companies. Turkcell (NYSE:TKC) is a wireless carrier servicing Turkey and has more than 35 million subscribers. While Telkom SA Limited provides voice, broadband and wireless services in South Africa. While both stocks offer a decent dividend and our methodology rates them attractively, investors must also do their own due diligence regarding risks specific to these companies. To be sure, none of these “sweet spot” companies are widely known or talked about, so if any of these five stocks interest you they need to be thoroughly vetted before inclusion in a portfolio.

Without further introduction, the five stocks that are Greatly Undervalued and get the 5-star rating from the crowd are as follows:

  1. Turkcell (TKC)
  2. Telkom SA (OTCPK:TLKGY)
  3. Excel Maritime Carriers (NYSE:EXM)
  4. Primus Guaranty (PRS)
  5. NovaMed (NASDAQ:NOVA)

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