General Stock Ideas

[gfp927z]

In addition to momentum stocks, another interesting trading approach is contrarian value. I have a lot of favorite stock lists, stocks that have been steady performers for a decade or more, but inevitably some have run into trouble. They are usually mid or larger caps, so the chance of a recovery is better. The risk is that their problems aren't just temporary, but the majority of these value plays have recovered eventually, though it takes patience.

Some examples have been Cal-Maine (CALM), which dropped from 60 to 35, but is now recovering back toward 50. Boston Beer (SAM) is another, which fell from 325 to 140, but has recovered to 250.

But sometimes they continue to drop. Stericycle (SRCL) had been a great stock for years, but after trying to expand into Europe the stock dropped from 150 to 60. Every time I thought it had bottomed, it somehow managed to keep falling.

On the other hand, with the momentum approach you are using, on the plus side the stock is already doing great, with a very strong uptrend. So the challenge is to figure out when it will run out of gas.

With contrarian value, there are a lot of good dividend stocks right now that have been hit as the Fed has raised interest rates. Some have been hit so bad that the selling has probably been overdone, and the dividend yields are really attractive. A lot of these are household names, conservative stocks that should recover over time -


https://investorshub.advfn.com/Contrarian-Value-Ideas-30183/