My 5 Favorite Stocks for the Rest of 2017 Aren't for the Faint of Heart

When I was asked to write this column identifying my five favorite stocks for the rest of the year, I admit that I cringed. My favorites are often among other investors' least favorites and usually take a lot longer to play out than most can stomach, if they indeed play out favorably.  This column easily could be titled the "best of the worst," and these ideas are not meant as core holdings but rather as satellite holdings for the bravest, or the most foolish, depending on your perspective.  You may want to take some Pepto-Bismol before reading any further.

Fitbit Inc. (FIT) has been trounced, down nearly 60% over the past year and 87% from its all-time high. Briefly a cult stock as wearables became the next new thing, growth investors have fled as revenue and prospects have dimmed. As a value investor, I don't always step into such situations, but this one seemed interesting. While I don't expect this to be a $50 stock again, it is compelling at just over two times net current asset value, with $676 million, or nearly $3 a share -- roughly half its market cap -- in cash and no debt. Cash admittedly can be fleeting when you are in the red. While the company's market share has been falling, earnings recently have not been as bad as expected. Put that all together and you have a hot mess that most investors are shunning. It remains to be seen whether Fitbit's recently unveiled smartwatch will bear fruit....443 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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