BOTTOM FISHING
irfan | January 20, 2009This is a simple way of finding stocks which are severely underpriced, or at least ones which you think have a high likelihood for going much higher.
Stocks in this category could come from:
• Really bad news.
• Bankrupt companies on their way out of bankruptcy.
• Turnarounds.
• Companies just going public or just getting listed on an exchange.
• Companies breaking out of their roll range with better earnings, new products, et cetera.
• Traditional penny stocks with some reason (pressure) for the stock to go up.
I do bottom fishing stocks all the time. I bought 141,500 shares of one company at around 6cent and sold it 18 months later for $1.40 to $1.50. A nice $200,000 plus profit! I look for more opportunities like this all the time.


