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