A Beaten-Down Stock in an Up Market
While the markets flirt with record highs, attractive stock prices are harder to come by. The list of 52-week lows is fraction of what it was a year ago or even six months ago. What remain on the 52-week-low list are mainly names that don't offer compelling prospects, such as several gold-mining stocks and other names that have a knack for consistent unprofitably. But some battered names are sitting at or near 52-week lows whose compelling stories could lead to superior returns.
As a result of several acquisitions, Digital Generation (DGIT) has become the world's leading ad management and distribution platform. Its technology is considered first rate, and when it acquired MediaMind, Digital Generation became one of the main players in online advertising distribution. Earlier this week, Digital reported earnings that included a $230 million impairment charge. In addition, the company announced that it had concluded its strategic review process without any satisfactory offers. This one-two punch sent shares down nearly 30% to an all-time low of $7 a share. Just over a year ago, shares were trading north of $20....331 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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