Investment Leads – 52 Week Lows
Posted on | January 26, 2010 | No Comments
One of the most important parts of beginning value investing is starting a system to generate investing ideas or leads. If you don’t have a source of new investment leads or can’t afford premium services that funnel them to you, because you are small money investor, you can sit on the side lines waiting until a new investment opportunity drops in your lap. For me, at least, that almost never happens.
But where to look? I like to start in the garbage heap, the detritus of stocks: the 52 week lows. For the non- value investor this idea may seem counter intuitive. Why would look at the losers to find a winner? There are several reasons, actually.
The important thing to remember is that price matters. Your purchase price of any investment effects your return. This should be obvious, but some investors actually invest ignoring this concept. If you purchase a stock at a bargain price you have more room for appreciation. You know that buying a stock at its peak is not likely to produce a high return. A stock at its lows has baked in failure into its price. Often this is justified. Some of the stocks at their 52 week lows will continue downward until they fail completely. Others, have had a temporary set back or an overreaction from the market. These are stocks to look for.
Within these stocks we can look for certain characteristics that tend to yield market out performance, such as low price to book and lost price to earnings ratios. Ultimately, you will need to sift through these stocks and find the gems. But this is not a post about value investing strategies as much as where to find them.
Here is a short list of places to look:
MSN Money has a set of lists that includes 52 week lows. Bing has taken this over and it no longer has a 52 week low list.
GuruFocus, better known for its premium content has a free list of 52 week lows.
The Nasdaq has their own list of 52 week lows.
Morningstar has a list of 52 week high and low. The highs are the first list. You have to scroll down for the 2 week low list.
Good hunting!
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