Inversion Appreciation

For the past couple of days I have been considering stocks that are expected to have low or even negative total returns over the next few years. After reading financial writer Mark Hulbert's comments on the Value Line Appreciation Index being near five-year lows, I wanted to know which stocks were expected to underperform the stock market. It was a useful exercise and provided some idea of stocks to avoid until pricing becomes more reasonable. However, in keeping with Carl Jacobi's advice to "Invert, always invert," I decided to see which stocks the research service indicates might have the highest total return over the next three to five years.

I have used the list of highest potential total return for years to cherry pick cheap stocks and long shots. It is one of the first pages I check each week when the issue hits my desk. I have found some tremendous winners on the list over the years with a few huge turkeys in the mix. Stocks on this list tend to be fallen angels, turnaround and hopelessly out of favor. This time, rather than pick the low-hanging fruit on the list, I am just going to reveal the stocks with the highest projection of annualized returns with no underwriting or investigation applied....534 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

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IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.