Buying stocks that have fallen on hard times, or just out of Wall
Street's favor, is a time-honored way to capture outsized returns. Price
does not always reflect the actual value of a company, and finding
these disconnects is one key to successful stock picking.
There are several ways to locate such stocks. The traditional way is
to crunch the fundamentals to determine innate value. While this
strategy can work, I consider it incomplete because it fails to consider
the future. In other words, it's just a snapshot of now. It doesn't
take into consideration the likelihood of the company's future plans
adding value and lifting the stock price. (more)
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