Bottom-Fishing for Value
Recent market volatility has led to an expanding list of stocks hitting 52-week lows. As the number of new lows expands, odds are you'll find a bargain swimming at the bottom. While I am not a follower of technical analysis, I have come to appreciate that more often than not when a stock price hits a new low, it often continues making new lows and burning investors who get sucked in.
With that caveat, it is nonetheless a worthwhile exercise to peek at what is swimming at the bottom of the barrel. What I found is United Online (UNTD), a collection of three unrelated businesses that should not be united at all, the main jewel being FTD, a well-known brand in the floral and gift industry. Three-fourths of UNTD's revenue comes from FTD, as do the majority of the entire company's profits. The other two businesses are a content-and-media business and a communications business with brands such as NetZero and Juno. The communications business is shrinking but profitable: in 2011 revenues were $27 million, producing profit of $11 million....296 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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