Hunting High and Low
Now that the Super Bowl is behind us and the Ravens have emerged victorious, we can move onto more important subjects. It is always a relief when we stop talking about football and move onto truly critical stuff like baseball and the search for cheap stocks. In the aftermath of Friday's article on the cheapest large-cap stocks I became very curious about cheap stocks around the globe. The domestic market has rallied impressively, and there are not a lot of new cheap names around right now. I set my trusty screener to look around the world for names that fit the definition of perfect stocks: profitable, pay dividends and cheap on an asset basis.
Two observations stood out immediately. The list is dominated by Chinese stocks -- nearly 80% of the names are in China or Hong Kong. I have learned my lesson with China. I attempted one last foray into China in 2008 when many of the stocks appeared to be net-nets. After that little venture, I now just assume that all Chinese company financials are fraudulent at worst and unreliable at best. I have come to the conclusion I have no interest in investing directly in a communist dictatorship with little to no financial supervision and no desire to anything but extract capital from my pocket. I may miss a few winners over the years, but I will miss a lot more losers and sleep better at night....523 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.