The Oversold and Undervalued! Banks and Retail@!!
Now as I know everyone is looking for the cheap stoc, and or the money maker. Well, I have a couple for you. If you take a look around I have noticed something alot of investors have overlooked. Pacific Sunwear of California, Inc (PSUN) Lets take a look at this retailer for a second, sure it has debt, and what companie doesn't? Pacific Sunwear has a Price to Book value of 2.34 and a Market cap of $82.78M. But here is another fact Pac Sun has a 52 week high of 6.84 a share. Of course with an EPS of -1.41 a share I can see where some investors would say this is junk. But the fact remains that this company has a ton of insider investing as of most recent and is 65% institution owned. Also, with christmas coming up, your teen or the teen crowd will be shopping there in droans! We all know that little teenage Mary must have that awesome tshirt or swimsuit, just to name a couple things.
Now moving on to my look into an oversold bank and or stock. Synovus Financial Corp (SNV) with a price to book ratio of 2.28 and 73% institution owned. The stock currently trades at $1.31 and has moved in the range of $ 0.94 - $2.99 during the last 52 weeks. They are still paying the 3.25% yield, which is not a lot, but it sure helps any IRA in the long run. I know you're saying, what a dud, not dude what a awesome stock! With an average trading volume of 7.87 shares per trading day, I would say that someone is taking a long hard look besides myself. One more thing with 30 bank branches in the United States, this regional bank is expected to rebound and make a nice profit in 2012 due to their move in the form of higher loan growth. Also keep in mind their Preferred SNVpT pays a nice dividend quarterly, about 50 cents a share. With a 52 week price spread of 10.22 - 27.25 and a current price per share of 12.94. It will make a nice investment at these levels for any IRA.
In conclusion if you dig deep enough you will find a few hidden gems.