Market rout has created opportunities

January 15, 2016 02:39 PM

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Adding five names intraday ...

When markets correct, often many solid names get caught up in a correction. In a sense the baby gets thrown out with the bath water. This creates opportunities for investors to find bargains.

There are five names I want to reinstate with the S&P now re-testing the August low and the Dow Jones off by 2500 points – 
names I had on a shopping list that have come down to where I am comfortable stepping in. 


Each of these names have corrected sharply and/or underperformed significantly since my exit and can be reinstated. All five are undervalued vs. the S&P and are trading with attractive multiples and/or with nice cash positions. 

If you are concerned that the market will go lower then hedge with short SPY and/or sell out-of-the-money put options on these names.

BBY is threatened by Amazon and other concerns but that is priced in with the shares trading < 9X and nearly 50% off its 52-week high.

 

Upgrading VRA from Hold to Buy ($13.48)

2017-2018 price target: $18

 

Upgrading FSLR from Hold to Buy ($59.19)

2017-2018 price target: $76

 

Upgrading BBBY from Hold to Buy ($43.38)

2017-2018 price target: $55

 

Upgrading NUAN from Hold to Buy ($18.04)

2017-2018 price target: $22

 

Upgrading JNPR from Hold to Buy ($25.44)

2017-2018 price target: $32

 

About the Author

Ronnie Moas is the founder and director of research at Standpoint Research. TipRanks recently ranked Ronnie #1 in a ranking of 3,500 analysts evaluating more than 400 of his recommendations since 2008. Ronnie Ideas are generated by a 155-variable computer model after heavy fundamental and subjective overlays are applied. Ronnie is also the founder of philanthropyandphilosophy.com. Research free trial at StandpointResearch.com @RonnieMoas