Of all the insight I've heard over these few crazy months,
the most telling came from an investor who appeared on CNBC
last fall and, being entirely serious, advised, "There're
only two positions to be in right now: cash, and fetal."
I get it. Even with the recent rally, the economy remains
wrapped in failure. Many companies that overleveraged their
balance sheets are permanently impaired and will never fully
rebound.
AIG (NYSE: AIG) comes to mind. We had an
unprecedented boom; now we're crawling out of an
unprecedented bust. That's how markets work.
Even so,Â
history tells us time and time again that the
good gets out with the bad in times like
these. Using the wisdom of our
140,000-member-strong
CAPScommunity, I've hunted down a few dirt cheap,
high-quality companies. Have a look:
Company
Recent Share Price
Forward P/E Ratio
5-Year Expected Growth Rate
Dividend Yield
CAPS Rating
(out of 5)
K-Swiss (Nasdaq: KSWS)
$9.04
N/A
19%
N/A
***
Johnson & Johnson (NYSE: JNJ)
$61.16
12.45
7.68%
3.2%
*****
Clorox (NYSE: CLX)
$58.23
12.65
9.67%
3.4% Continued... |