What are some companies that have low priced stocks now but are promising to rise?

Question

Does anyone know of any companies that might have recently started or just has low-priced stocks, and looks promising to go big? Even if someone might know of a company that has drastically reduced their stock prices, but the company is only going through a recession and is likely to build back up. Thnx

Answer 1

Personally I think the auto companies will eventually comeback.  They've been taking a huge hit these last few years as they try to revamp their strategies.  GM hit a 50 year low a few days ago and Ford is now under 5 bucks but I think in the long run they will bounce back and/or get bought which would make the stock go up.  I think the best thing to look for are growing fields such as solar companies, pharmaceuticals, and other fields that are gaining revenues.

Answer 2

I invest in stocks. I own big caps like axp and bmy. However, I do search for stocks that are at a 52 week low or near it, say within four dollars. One particular stock I am presently buying on a dollar cost averaging format is Ford Motor Company(F). It closed friday at $4.98 -.09. Be advised this is a lonnnnng term investment strategy. I'll buy this stock probably upon its arrival at $10. Stocks that sell below $10 I have a rule against buying for this is an indicator the company is truly challenged in all aspects of the business. Ford has a lot of contingentsies to navigate:gas prices, suv production reduction, an economy in recession, credit crunch, expanding quality foriegn competion, hybred production, etc. Ford has no where to go but up and I will make this below $10 exception.

Answer 3

On valuation the banks are dirt cheap (historically).

Here are a few:

BAC bank of america-around 25 and gives a 9% dividend

C citigroup-around 17 and gives a plus 6 dividend

JPM-jp morgan-35 gives a 4% dividend(america's strongest bank)

STI-suntrust-regional bank at 35 with a 7% dividend

RF-regions-regional bank at 11 with strong dividend

Long term these will be winners.