With all the volatility in the markets today, there's no shortage of market seers attempting to call a bottom. Bernanke called a bottomnot once, but twice. Heck, even Keanu Reeves laid out what a world-ending market bottomlooks like.
Investors should consider buying stocks after a big decline, when pessimism has unduly beaten good companies down to attractive prices. That's why we here at the Fool -- and 140,000-plus investors like us -- look to the Motley Fool CAPScommunity to help sniff out the real opportunities from languishing companies driven by speculation.
A real bottom, or another leg down? Of course, there's no foolproof method for timing a market bottom. But CAPS has a great balance of both quantitative and qualitative resources available on 5,300 stocks, and even a nifty stock screening toolto help investors quickly zero in on potential investment opportunities.
I've used the CAPS screener to filter out $100 million-plus companies that have seen their stock price appreciate by at least 15% in the past 13 weeks even while they remain at least 40% below their 52-week highs. These stocks also have both a positive return on equity and earnings per share over the past 12 months; these criteria limit the results to companies that have a history of delivering results regardless of stock gyrations. If you'd like, run this screen yourself-- just keep in mind that the results may change as the market does.
Company
CAPS Rating (out of 5)
13-Week Price Change
% Below 52-week High
Satyam Computer Services
****
24.8%
62%
CardioNet (Nasdaq: BEAT)
***
18.7%
75.3%
Associated Banc-Corp (Nasdaq: ASBC) Continued...
Dave Mock is a Motley Fool contributor.
Be the first to read Dave Mock's column. Sign up today and receive Townhall.com delivered each morning to your inbox.