This seems a reasonable investing attitude......
biz.yahoo.com
To say 'buy low P/E stocks', is the same as saying 'buy low' and there is also some reason for the stock to have a low P/E . Perhaps dividends are not sustainable, perhaps there were one-time earnings, so some caution is needed to estimate why its at a low P/E.
Buying at a low P/E would help avoid the popular high cap stocks which are over-touted and overbought if merely because they get most of the headlines and appeal those those who do not have time to work the market
Those inclined to find the "next IBM" or the "next Dell" because its an easy sell for a broker.
If Intel reports above the estimates, so many people jump on the ship it gets overloaded and starts to sink
My preference is for lesser known stocks with excellent growth regardless of P/E that have dropped down(drifted down, not crashed) from a high. This happens often when stock splits ( nearly guaranteed ) with recent examples being AGI and INTC.
In fact nearly every tech stock in the US has dropped after the last split It is merely that some have not hit bottom yet even after 3 years ( How about that last 4/1 on Glw?)
A second preference is for a stock that has been unfairly treated as a member of a segment in trouble, regardless of the fact it has a difference MO or is a specialist instead of a true member of the clan
The example here would be Dell, which has an entirely different sales tactic than HP/CPQ /IBM /MU
Strange to me how HPQ seem touted more than Dell, always going to make a comeback, always going to improve, always going to finally cash in on the buyout of Dec, Cpq, and a few more, boy, just wait till the market improves and they start moving those computers stockpiled in stores for double the cost and price of the Dells.
A second category is, as I have said before, lesser known retailers who are specialists but taken down by
being grouped as member of the gross retailer clans.
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