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Δευτέρα, 31 Αυγούστου 2015

3 Stocks Near Their 52-Week Lows Worth Buying

Sometimes the reason for a falling stock price is company-specific, a result of company operations, or related to one-time events such as a company making major capital expenditures or paying a tax penalty. Other potential causes for a stock price drop may be marketplace-specific situations, such as a seasonal downturn. General bear market conditions for the company's sector or industry may also cause a stock price drop, even when there is nothing fundamentally wrong with the company.
In any event, all stocks trade within a 52-week range, and many market analysts recommend at least taking a cursory look at any stock trading near its 52-week low in order to see if it might represent a good buying opportunity.


The chance to buy Coca-Cola, Co. (NYSE: KO) around $1 a share is long past, but investors occasionally have the opportunity to buy into one of the most stalwart companies in history at an advantageous price. Such an opportunity may exist now, with Coke trading near the bottom end of its 52-week range of $39 to $45 a share.
Fundamentally, Coke remains the leading soft beverage firm worldwide, with a logo that is recognized by 95% of the world's population. Emerging market countries should continue to provide the company opportunities for significant revenue growth. Coca-Cola has more than 500 brands, bringing in billions in revenue year after year. Coke has responded to more health-conscious consumers by expanding its product portfolio to include healthier beverage choices beyond its signature brand.
With a 3.2% dividend yield to tide investors over until the stock's price increases, and a projected earnings per share (EPS) growth rate of nearly 7%, Coca-Cola remains a solid company likely to appreciate in value for years to come.

Lumber Liquidators Holdings, Inc.

Lumber Liquidators (NYSE: LL) may be a bargain indeed, trading near its 52-week low of around $12, with a 52-week high of $70. The stock took a dramatic, event-based tumble when a February 2015 news story leveled charges that the company's flooring material contains dangerously high levels of formaldehyde, collapsing the stock to almost $10.
The company has obviously taken a major hit, but it's doubtful that the business has actually decreased in value 85% over the space of a few months. Odds are good that the company will recover from its public relations downturn over the course of the next year. If it manages to recover even half its former share price, that would represent more than a 100% return on investment (ROI) from current price levels. The company has an established track record of keeping its production costs low relative to those of its competitors, which gives it a pricing edge in the marketplace. It has a significant presence in China, the most promising emerging market economy.
The company's current price/earnings (P/E) to growth ratio is below 1, making it worthy of consideration on basic value investing principles.

Galena Biopharma, Inc.

Like Lumber Liquidators, Galena Biopharma's (Nasdaq: GALE) troubles are primarily event-driven and the result of bad press. Its stock fell from $2.70 a share to less than half that, $1.28, after it was revealed that Galena had paid a firm to pump up its stock price.
Just because the company was paying to have its shares pumped up doesn't mean the shares don't have any intrinsic value. Since the scandal broke, the company has worked diligently to show that it has reformed, replacing roughly half of its management team with solid, respected veterans in the industry.
The company still has significant fundamental potential in the biopharma industry, where it specializes in developing anti-cancer treatments. Existing products NeuVax, Abstral and Zuplenz are performing well, and the company has a solidly established research and development pipeline that promises to continue delivering marketable new products. With the share price still well below the five-year average price of $2.10, and with analysts starting to make positive revisions of estimated earnings, Galena's current price around $1.40 may present an excellent buying opportunity. 


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