- 22 октября 2012, 18:48
- Seeking Alpha. Most popular articles
"Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria." - John Templeton
One of John Templeton's mantras was "Outperforming the majority of investors necessitates doing what they are not doing." Moreover, he didn't simply want to bet against the crowd, he looked for opportunities where the stock was at its "point of maximum pessimism." I have selected five companies to consider that may fit Templeton's definition. We will attempt to distinguish if these stocks are value trades or value traps.
A value trap is a stock that appears to be a bargain based on fundamentals but has no catalyst for growth. The stock traps investors when they buy into the company at low prices and the stock never recovers. Sometimes stocks are down for good reason. Sector, industry or company specific headwinds may be so strong and prevalent the company may
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