Targeting Turnaround Candidates

There are times when the macro and technical chatter just gets to be too much for me, so I often retreat to my office, turn the phone off and run screens looking for situations with the potential for large returns. I am very much an individual stock picker -- most of the big-picture strategies just makes my head hurt. Although I have set screens that I use to find my core value positions, I am fond of switching up the variables and looking for stocks that might not fit my regular parameters but could provide explosive returns for aggressive investors. I don't always buy them but I have some friends, kids and readers who like these kinds of situations, so it's a worthwhile exercise.

On Monday night, I set the screener to look for stocks under $5 that could have huge earnings gains next year. Although I generally do not rely much on Wall Street analyst estimates, they can be useful. I am not looking for precise measurements of 2014 earnings but general direction and approximate magnitude....499 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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