Anybody have some good undervalued stock recommendations?
My daughter called me about BEBE when it dropped below $3/share. She told me that she loves to shop at Bebe, and the share price had been around $9 in the past. She wondered if it was a good deal at $3. I looked at the key statistics and saw that the company had no debt, so I advised her to buy some. I assumed that the company designers had had a bad-hair year. There was one more price drop and I bought some shares for myself at $2.65. Turns out to have been a good deal and I doubled my money.
The two stocks I currently recommend to people are IMOS and GE. Buying GE is like buying a mutual fund without any fees and you get a 3.3% divvy while it appreciates. I think it will slowly climb back to $30 over the next year or two, and I enjoy trading it all the time because my cost basis is very low.
IMOS is an under-the-radar stock that is practically minting money. The story is long and complicated, but the IMOS message board is one of the best, and anyone can go there and read why the stock has been undervalued for years and why it's currently an A-rated stock by Schwab. My cost basis is about $3, the current price is $18.50, and my price target is $28.
Because I've sold most of my other winners during this long runup, I'm now looking for misunderstood undervalued companies similar to BEBE or IMOS when they were at $3/share. Anybody got any recommendations?