Trolling the New-Lows List

One of my regular exercises in search of investment ideas is to read the list of new lows carefully. I have been doing this on pretty much a weekly basis since the late 1980s when I read an interview with Robert Rodriguez of FPA Capital Fund in which he suggested that this was how he created his shopping list for stock ideas. Back then, this took the better part of a Friday because you had to clip the list out of the Wall Street Journal and then spend the day looking stocks up in S&P or Value Line Reports by hand in actual books. Today, I can accomplish the same task in an hour or two on Friday morning with the aid of the Internet and some good coffee.

Just about every week, there are a bunch of small-cap biotech stocks on the list. I pretty much skip these automatically. I have no core knowledge or competence in evaluating biotechnology, so I ignore them. I do the same with all the Chinese stocks on the list. I trust no information out of China's governments or corporations. I made one last attempt with some net-cash stocks back in 2009 and it ended, as it always does, with cooked books and booked losses. This can be the "Century of China," as Jim Rogers calls it, without my participation....618 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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