I am always looking for a good deal, whether that means
buying an extra box of Golden Grahams when they're on sale or
pouncing on undervalued stocks. The idea that anybody would
sell a stock for less than its worth may seem silly, but
legendary value investor Ben Graham (no relation to the
cereal) tells us, by way of allegory, how we can
look out for these situations.
In
The Intelligent Investor
, Graham introduces readers to a wacky chap named Mr.
Market. Mr. Market's game is to pay you house calls on a
daily basis to offer to sell you interests in businesses he
owns or to buy from you interests in businesses you own.
Sometimes Mr. Market will show up at your door very excited
and offer you premium prices for your holdings, while at
other times he'll be inconsolably depressed about the future
and will offer to sell you what he has for as low as pennies
on the dollar.
To find some of the stocks that Mr. Market is depressed
about, I've turned once again to The Motley Fool's
CAPS investor community. Each of the
companies below had been given a
five-star rating(the highest) by our
community of investors just 30 days ago:
Stock
30-Day Return
One-Year Return
Current CAPS Rating
(out of 5)
Female Health
(32.4%)
79.3%
*****
Coventry Health (NYSE: CVH)
(10.2%)
(37.4%)
*****
VASCO Data Security (Nasdaq:
VDSI)
(9.7%)
(22.1%)
*****
Guangshen Railway
(9.2%)
(7.8%)
*****
UnitedHealth (NYSE: UNH)
(8.9%)
22.5%
***** Continued... |