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Buy these stocks now, while everyone hates them

Ultimately, there’s only two possible reasons why a stock goes down: a good reason, and no good reason. No good reason—or at least, the assessment of such—is admittedly more common when it is a stock we own. There are occasions when we can tell with relative certainty that a stock has fallen due to market forces, or sector forces, or short selling or – the list goes on, but in other words, there are occasions on which a falling stock price doesn’t indicate a failing company.

Today we are looking for a few tarnished gems, the cast-asides, remembering how many of the greatest companies on the market have survived deep declines in their stock price. Just to give one extreme example, Priceline (PCLN) lost more than 99% of its value, and then, yes, gained back every penny of it and more.

So, just to be clear, nothing like that is going to happen with any of these stocks. But they do look like as though they are due for a break, say to the tune of 20% to 30% bump over the next three to five months. Remember to treat these ideas as just that, ideas, and do your own research before investing.

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.