Rummaging Through the Fallen Angels
Business history is littered with titans of industry who fell from grace. For some the fall was permanent, with the playing field having been forever changed by the evolution of business and technology. The newspaper industry is a great example of this. For others, the decline presented an opportunity to reevaluate and reformulate the business. In this case, if the strategy works, the potential upside could be off the charts. Back in 2006 online travel site Priceline (PCLN) was thought to be doomed thanks to names like Expedia (EXPE) -- yet the company reinvented itself. Shares have climbed from $22 back in 2006 to more than $500 today.
Of course, the million-dollar question is where -- out of the pair of choices above -- a fallen angel will end up. There will always be a degree of uncertainty, and that is why the potential payoff is asymmetrical. I've discovered a couple of fallen angels that fit this mold, and which could be potential multi-baggers if management can find a way to adapt and prosper in the difficult environment....504 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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