A Tale of the Turnaround

I had a brief discussion recently with a long-time acquaintance about ways to search for stocks that present bargain opportunities. I told him that one of my favorite slightly offbeat screens was to look for companies that are losing money now but are expected to make money next year and grow over the next five years. I also like these stocks to be down this year and be generally unloved.

I often make fun of Wall Street analysts and I would not bet on the accuracy of their guesstimates; however, they usually get the plus/minus and trend correct, so it's a useful screen. Wall Street notoriously over-weights the near term and under-weights (if not ignores) the long term, so the screen can find interesting value candidates. The resulting list is valuable for identifying trends and clusters that contain useful information....517 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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