Digging Deep for Value

Today I want to spend a little more time with the list of stocks with highest projected three- to five-year total return as ranked by the Value Line Research Service. I noticed that several of my favorite stocks, which have a high potential total return for long-term investors, made the grade. I took the basic list provided by Value Line and culled it by price to tangible book value to look for deep value stocks worth buying right now.

One of the first stocks to catch my attention is one I have just started to buy. Naturally, once I put buy orders in to catch the falling knife shares of Pan American Silver (PAAS) rebounded a little bit. I doubt the volatility is going to go away in the precious metals, so I expect to be able to add to my tiny starter position. Its mining interests throughout South America produce not only its namesake silver but also gold, copper, lead and zinc. The company is being hurt in the short term by metals prices and a strong dollar but it has a rock solid balance sheet with more than $500 million in cash. After the recent dividend hike, the stock yields 3.9%. This was a $40 stock not too long ago and could be one again at some point in the next five years. Trading at 80% of tangible book value, the shares are cheap enough to begin buying on a scale....489 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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