room addition to existing house capstone remodeling sanchez remodeling adding another room to your house south barrington small finished basement .. Chicago Drug testing

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought up the topic of the down-and-out company of the day and whether to buy now as a speculation. Last year, K-Mart was the big news, and everyone wanted to know whether this was a good stock play. Today the news is focused on WorldCom and its downfall. Thus, some people are pondering this stock for quick profit potential.

Here's the scoop: Don't buy WorldCom.

I know! It's impossible for MCI to disappear: they're too big, they're too popular, their service is excellent, etc. That's the good news that everyone is talking about. But there's another side a darker side to the story. The company filed for bankruptcy because of their massive debt load, not just because of accounting failures. The accounting failures probably only came to light as a result of the company's lack of funds.

In the end, it will be the same story as K-Mart. It won't matter whether K-Mart or MCI survive, the shareholders will not. If the business survives still debatable in K-Mart's case, but more likely in MCI's business ownership will be transferred to the bondholders and other creditors by law. This is what bankruptcy courts do. Shareholders get nothing. If you want to gamble on MCI/WorldCom, you might consider their bonds rather than their stocks, although that option may not be great either.

So, is it pointless to look at "down-and-out" stocks as quick turnaround opportunities? Well, we may avoid the "down-and-out", and instead just invest in the "down-and-uncertain". These can be awesome opportunities, but be aware that the risks are sometimes high among these downtrodden firms.

Here is a list of 25 of these beaten down stocks which today sell for under $5. Some are well-known businesses, other names are less commonly known. Some are dot.coms suffering from the fallout of that moniker, while some languish in other areas of high tech. The energy market has taken more than its share of hits since Enron's collapse, and that industry is well represented on the list. Telecom, still reeling from WorldCom's collapse, is also present. For variety, the list includes everything from media to education, from international trade financing to pencil-graphite production.

If you're convinced that buying the beaten down is the best way to make money, this should provide you vastly better choices than K-Mart or WorldCom. Anything on this list is better than those two doomed stocks. While a few are pending investigation (*starred), most have fallen simply because of the whims of the market. Some are even maintaining profits in this tough environment.

With the market in the doldrums, out-of-favor companies sometimes fall more than would be rational. As a result, you might find great buys in stocks like this. But in this market, there are great buys everywhere. The question is when to buy.

Market timing is not necessarily wise, but when the market is falling as harshly as it has been, one can afford to wait until the stock is so low that you are virtually certain it can't go lower. Some of these stocks have reached that level.

To send comments or to learn more about Scott Pearson's Investment Advisor Services, visit http://www.valueview.net

Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.

In The News:

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

401K-itis

Are you one of those many people who dread reading... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

Parachute Investing

Ever jumped out of an airplane? It's OK if you... Read More

Bad News is Good News

For weeks, no, months we have been bombarded with nothing... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Alfred E. Newman

What! Me worry?Many of you remember the cover of MAD... Read More

Commoditizing the world

Let's discuss commodities; with the latest Enron situation, it is... Read More

Historical Briefing: Stocks, Finance and Money

The World Bank claims that some two billion of the... Read More

Its Better

Question: How does it get better when it gets worse?Last... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

Quality Investment Information: Standing Firm In the Face of Opposition

THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Market Psychology

Today we are inundated with tons of information about the... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

high bay led led bulb Pete's produce ..
high bay led led bulb Pete's produce ..