What are the most undervalued stocks on the market yet? Who knows and Why?

Answer 1

Somewhat of a difficult question to answer because of its subjective nature. John T gave a well thought out answer.

I do not know if I can do as well but I will give it a try. Normally, companies are undervalued for a reason. Sometimes the reason is because of the cycle they are in, sometimes because of management mistakes, sometimes because investors just are not interested.


1. I can not help but think that the railroads are undervalued. They are the most efficient means of transportion by at least a factor of 7. The only thing allowing trucks to compete with them is the mammoth government subsidy that the trucker enjoy. That may of course last a good while longer but eventually the government is going to have to throw in the towel. The rails are worth at least 4x times their current value.


2. Here is the deal. The world runs on oil. Forget the nonsense about ethanol. Takes more energy to make the stuff than you get out of it. All ethanol production will do is drive up the demand for oil. Good for the oil companies. Unlike gold, the world supply of oil is deminishing and the demand is increasing. I can not think of a better investment opportunity than a rising demand curve and a falling supply curve. The one wrinkle is that the government is likely to step in and attempt to set the price of oil by edict. That should be interesting indeed. They did that once before if you recall. Long lines at the pumps. This time there may not be any to pump.

Answer 2

I'll give you three for different reasons, but read my answer to your other question before you buy any of them:
1) DHI, DR Horton, a homebuilder. It's shares are priced at near it's 'book value' because of all the negative housing market news (and it's reality). It pays a dividend and is a good company. It's price is likely (my opinion) to stay low ($21-$23/share)for a year or two until the housing market recovers. It is strong in the south where there is less of a downturn.
2) NLY, Annally Mortgage, a REIT, buys AAA rated loans, It's share price is down in the last few weeks because of negative news in mortgage business and fears the Fed will increase rates. It raised it's dividend to .24 cents from .20 this week. It's share price is directly effected by it's dividend rate. At it's current price, that is about 7.5% which is high.
3 MPX, Marine Products, a boat builder, it's share price has dropped tremendously since it's high of 15 a couple years ago, due to gas prices and economic fears. It has gained market share in the industry but has not significantly increased profits in that time period. This business should soar when economic fears subside.

There's 3 stocks for YOU TO RESEARCH. Remember, you need to educate yourself. I don't expect any of these to dramatically increase in share price in the short term, but long term investment is really the way to go. Of the 3, Annally should see the quickest gain, but the market is hard to predict completely. They all pay dividends.

Answer 3

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Answer 4

hard to say. Some stocks are cheap because of an unfair downgrade. Some are cheap because their sector is doing poorly. Some stocks are cheap because they missed earnings.
I think that it's best to buy stocks after a correction. A market correction brings all stocks down, even ones that shouldn't go down. That's when it's time to go bargain hunting.

Answer 5

Institutional investors tend to be short sighted. They focus closely on quarterly results and are afraid of stocks with long time horizons. An analyst does not get ahead with five year predictions, results are required sooner.
For a person with some patience, long term growth stocks are always undervalued. Let me give you a few. They are not guaranteed winners but if you can spread your risk a little these are first rate and I believe under valued.
ADBE ADOBE SYSTEMS INC
AAPL APPLE INC
BDX BECTON DICKINSON CO
CME CHICAGO MER EXC A
COH COACH INC
CMCSA COMCAST CP A
EBAY EBAY INC
EXC EXELON CORPORATION
FRX FOREST LABS
MON MONSANTO COMPANY
NTAP NETWORK APPLIANCE
NEM NEWMONT MIN CP
NIHD NII HLDGS INC
NMR NOMURA HOLDINGS ADR
NVDA NVIDIA CORP
ORCL ORACLE CORP
PAYX PAYCHEX INC
POT POTASH CP SASKATCHEW
PCP PRECISION CASTPARTS
QCOM QUALCOMM INC
SGP SCHERING PLOUGH CP
SLB SCHLUMBERGER LTD
SHPGY SHIRE PLC ADS
SPG SIMON PPTY GRP INC
SNN SMITH&NEPHEW PLC NEW
STJ ST. JUDE MEDICAL
STREETTRACKS GOLD TR
SYK STRYKER CP TROW T ROWE PRICE GROUP
UU UNITED UTIL PLC ADS
VNO VORNADO REALTY TRUST
WIT WIPRO LTD.
WWY WRIGLEY WM JR CO

Answer 6

I wish you the best of luck. You're looking for important investment advice from strangers that you can't verify their qualifications or motives.

Good luck with the suggestions you get. They'll be worth every penny and effort you put into getting the answer.

Answer 7

if we all knew the answer to this question, we'd all be really really rich right now.

I'd be somewhere beautiful, sipping a fruity drink...