"You're riding high in April, shot down in May" was Frank Sinatra's take on life. But for Scott Bleier, founder of Create Capital, the quote is all too telling about the market today, and it applies to his mantra of capitalizing off of stocks that have been shot down and left for dead.
"You have to dig deeper, go where expectations are the lowest," Bleier says. In order to find opportunity in a marketplace he believes has been broken by QE2, you have to think and act differently. "The entire construct of the market is false," he says. "If you understand that, you can play in this market."
Neither bullish nor bearish, this self-described realist says step one is to avoid what's working now and instead, find what nobody else is watching, like Logitech International (LOGI). His reasoning is simple: "Everybody thinks PC's are dead, right? That tablets are everything?" Thus his thesis on recommending Logitech, the humbled mouse, keyboard and remote control-maker. "They made a big bet on Google TV. It was a flop. But they have a whole new generation of products coming out" that he believes will see the stock pull off a round-trip trade -- from $20 to $13 and back to $20 again, just as it has many times before.Read More »from 4 Stock Picks That Have Been “Left for Dead”: Scott Bleier