Price Wimps of the S&P 500

by Investment U Research Team

Some of our members have asked us about penny stocks, and as a rule we stay clear of them. Most stocks trading below a dollar are there for a reason. But it certain situations, there are opportunities to take advantage of “Mr. Market’s” pricing confusion.

So with that perspective, we thought it might be beneficial to look at some serious value plays. These “Wimps” are the cheapest stocks in the S&P 500 (.INX).

Barring companies over a buck, we are presented by a number of “deep value” companies that would make Bill Miller shiver – That is if he wasn’t still curled up in a corner from his beating at the hands of the market last year.

Amongst those listed companies below a dollar, American International (NYSE: AIG) at  .35 may not surprise, but E*Trade Financial (Nasdaq: ETFC) at .62 does.

Office Depot (NYSE: ODP) at .68 is another that shouldn’t surprise with business spending down. On the other hand Genworth Financial (NYSE: GNW) at .84 and Tenet Healthcare (NYSE: THC) .92 aren’t shocking with the state of the economy and financial sector.

Legendary investor John Templeton’s famous start came from buying some of the cheapest stocks in 1939. He bought 100 shares of every company trading under a dollar. The returns from those purchases made him a billionaire. Time will tell if any of us can do the same in today’s market. But today’s wimps could be tomorrow’s portfolio heroes.

Companies mentioned in this article: AIG, ETFC, ODP, GNW and THC.

• When You’re Wrong, You’re Wrong
• E*Trade Attractive Again?
• E*Trade Forgotten Profit Center

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

Could you use an extra $600 - or more - each month?

If so, you’ll want to check out the details of an overlooked government-backed program in THIS REPORT.

It shows you why the government is set to distribute $457 million to a small group of recipients, how to get your name on the list and the exact deadline you must meet in order to qualify.

One Response to “Price Wimps of the S&P 500”

1. vikash singh Says:
   March 9th, 2009 at 9:29 am

   what crudeoil in posisen sir and naturalgas or copper news.

   Reply

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---