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Posted

What are the most hated stocks/sectors right now?

 

Might be a good place to look for longs.

Russia and the Ukraine come to mind.

Short selling has been run over - not sure how to play that.

Posted

Mining stocks are definitely in a despised group.  A lot of them deserve to be there, but not all of them...

 

What about shipping?  That has been in the doldrums for a long time.

 

For profit education of course.  COCO has yet another lawsuit against it.  How long can they hold out?  The whole education system will be changing.  Not soon enough.

Posted

anything really that is about to be replaced by a new technology. Usually after the market thinks this, some kind of imminent disaster is priced into the stock, like with outerwall.

Guest wellmont
Posted

any stock with sears in the name. sears holdings. sears hometown. sears canada. 

Posted

Gun stocks?

 

They don't look all that hated to me. 

 

SWHC 2yr chart

 

I have some SWHC. not bad  :)

 

To me, they're hated in the sense that valuations are low.  Both RGR and SWHC are currently magic formula stocks.  For-profit education and MLM are also currently showing up on magic formula investing, alongside tech companies like Microsoft, Apple, and King (!).

 

Their short interest is high.  However, if you define "hated" as stocks with high short interest and expensive borrows, then there are areas that short sellers hate a lot more.  I think the intention of the original posted was to discuss areas that the longs hate.

 

2- On a backwards-looking basis, the gun stocks have seen their profits grow like Salesforces' revenues.  Yet their P/Es are incredibly low.  Super-hot growth stocks usually attract very high multiples.

RGR is at a 11.33 P/E.

SWHC is at a 9.82 P/E.

 

So this is why I say gun stocks.  I define hated based on my ideas about valuation.  Of course, other people in this thread are applying different criteria.  Certainly you could use criteria such as:

 

"Ick factor"

Declines in share price

Price/book

net-net liquidation value

P/E

PEG ratio

Discounted cash flow

Inability to raise capital

share repurchases

etc.

 

(*I am long RGR calls, so I might be a little biased!)

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