Best Stocks to Buy | Best Value Stocks | Former Tech Superstars
A very good place to look for the best stocks to buy in a tough market is with the best value stocks. In many cases after a strong market pullback or a tough economic growth environment, there will be many best value stocks to choose from. Many sectors are usually hit hard and the even the best stocks to buy go down with the rest of the market. In this case, we are focusing on thirteen former technology stock “superstars” from the 1990′s that have come on very hard times and are out of favor with investors and institutions.
However, for the value pickers that are looking for the best value stocks to scale into or for the best stocks to buy for the long term, these stocks could offer very good buying opportunities. The long term investor just needs to be patient and act by carefully selecting the best stocks to buy up at bargain low prices. These technology superstars from years past are not completely without upside promise. All it takes is a buyout offer from another company or a change in company strategy or direction during the economic recovery to make some very nice profits from their currently depressed levels.
This blog focuses on some of the former technology superstar stocks that made many investors and hedge funds very rich in the 1990′s. For these stocks, their best days are definitely behind them and they will never return to those high priced days. But, they have been sold down so far now that these stocks qualify in our best value stocks category. The upside potential for this best stocks to buy list of 13 stocks could be 30% or more in the next 12 months if the economy recovers. The values on this best stocks to buy list in terms of Price-to-Book, Price-to-Sales, and the forward Price-to-Earnings ratios are very attractive and that is why they qualified on our scan for best value stocks.
Now of course there are still problems with a number of these companies and that is why most of the hedge funds have recently sold them and why short sellers are still pounding them down. On the other hand, there remain lots of large funds with ownership of all of these former tech superstars and just a hint of a modest recovery could send them back up in a hurry. Momentum Rider sees good reasons for significant upside in all of these on the best stocks to buy list and several could even be purchased in buyouts: RIMM, ALU, NVDA, JDSU, JNPR, and DELL are possibilities.
Best Stocks To Buy | Best Value Stocks | 13 Former Tech Superstars:
Value investors should be taking a serious look at the above list of best stocks to buy in technology as part of a best value stocks category. China will rebound and the slow but steady US growth may help avoid another double dip recession. The additional advantage for some of these best value stocks in technology is that they carry significant fund sponsorship and routinely show up on buy lists for large funds. Investors need and want the big funds to still have them on their acceptable buy lists. The acceptable right prices are getting very close in our opinion to trigger some fund buys looking for the best value stocks.
There is no doubt based on any reasonable economic recovery that scaling into these best stocks to buy that were former tech superstars will provide strong gains in the future. Patient investors will reap potentially big rewards in this best stocks to buy value stock list.
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Good luck in your trading and investing,
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