There are two near certainties that every trader soon learns. One: even a dead cat will bounce. And two: but it's still a dead cat. True enough, but not every cat that falls from a tree is a dead one. Some got unlucky after going too far out on a limb, some got exhausted after running too far, too fast and some, admittedly, let themselves get a little too fat and lazy. Still, after the convalescence, after the rest, after shaking off the weight, they will be climbing again, and in practically no time at all, some will be higher than ever before.
For a stock to trade near its 52-week lows while the market sets new a record high nearly every day is, if nothing else, embarrassing. Upon examination, some such companies have so much evident value that one wonders whether the market is truly being rational. In some cases, it seems to be acting out of fear, resentment, or even sheer boredom. We believe each of the following stocks could be a winner disguised as a loser. Thus far, the disguise has proven effective, but for those prepared to see past short term problems, the potential gains here are enormous.