During my latest appearance on CNBC’s Stock Brawl on Monday, I railed against the practice of buying overvalued stocks and hoping they’ll one day grow into their valuations.
That’s a fool’s game. Especially five years into a rip-roaring bull market.
Instead of overpaying, we should (always) be on the hunt for undervalued names with solid growth prospects.
After all, as Warren Buffett famously said, “Price is what you pay; value is what you get.”
Granted, that’s easier said than done presently, given that roughly 90% of stocks in the S&P 500 Index rallied last year.
But it’s not impossible. Because, believe it or not, the most compelling bargains right now can be found by digging through other investors’ trash piles.
I shared earlier this week that the end of a historic year for stocks prompted a spat of indiscriminate selling in an effort to harvest tax losses, setting the stage for a strong bounce back in the weeks ahead.
And as I promised then, here are six tax-loss treasures worth adding to your portfolio right away…
Tax-Loss Buying Opportunity #1: JDS Uniphase Corp. (JDSU)
JDS Uniphase, a $3-billion market cap company, is one of only 48 stocks in the S&P 500 to fall in price in 2013. Most of the bleeding came during the fourth quarter, too, thanks to a weak quarterly report.
However, the leading provider of communications test and measurement solutions appears to be on the brink of reporting a strong quarter. (more)
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