| How to Identify and Profit from Undervalued and Beaten Stocks
Do you remember the Three Guys Department Store chain? Probably not. They
declared bankruptcy, and faded into oblivion, some years back.
Prior to bankruptcy, their stock had made good money for early investors.
It then stabilized to rise and fall with the market as such unspectacular
issues seem to do.
That is, until news of their impending bankruptcy leaked out, and a
desperate race ensued as panicked investors rushed to dump their shares of
the plummeting stock before it hit rock bottom. Soon it was worth mere
pennies per share.
Then, to the amazement of most, something unusual happened. A few
knowledgeable investors made an incredible discovery and began to buy up
every available share.
Though the founders of this huge chain of discount department stores were
terrible at merchandising and management, they had done one thing very
right. They had purchased each of their many new store locations before
going into business.
That's right. By the time they went into bankruptcy, they owned every
single one of their stores, free and clear, on some of the most prime
commercial real estate in America.
Liquidated... the company was worth a veritable fortune! Not one creditor
lost a dime. The principals walked away wealthy. And, an unbelievably small
investment would earn millions of dollars for each of its new
stockholders... in a very short time.
This is but one example of the thousands of undervalued and depressed
stocks that have earned fortunes for those lucky enough, or smart enough, to
discover them.
For, in truth, such inexpensive, highly leveraged issues have always
excelled far beyond the market averages... leaving the DOW... S & P... and
even the NASDAQ in the dust!
What does today's market offer the wise investor?
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